GBP/JPY Price Analysis: Despite geopolitical jitters, bulls eyeing 157.00

The British pound edges higher for the second straight day, amid a risk-off market mood courtesy of Russian/Ukraine headlines crossing the wires. At the time of writing, the GBP/JPY is trading at 156.90.

The financial market mood remains sour on increased geopolitical tensions. US equity indices trade in the red, while in the FX space, risk-sensitive currencies appear to be unaware of the recent developments in the last hour.

Following the Federal Reserve monetary policy minutes release, around 19:15 GMT, Estonian intelligence reported that Russia is moving ten new battle groups to Ukraine’s border, per Reuters. A couple of minutes afterward, the US State Department confirmed that more Russian forces, not fewer, are on the Ukraine border and moving into fighting positions.

Putting the geopolitical jitters aside, the GBP/JPY seesaws in the 156.40-157.00 range for the last couple of days. Even though the GBP posted gains, the average daily range (ADR) of the last two days shrank from 112 to 50 pips.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY is upward biased, as shown by the daily chart. On Wednesday, the GBP/JPY reclaimed so far, the February 15 daily high at 156.81, and if it prints a daily close above of it, it could pave the way for further gains.

Upside, the GBP/JPY first resistance would be 157.00. Breach of the latter would expose a five-month-old downslope trendline around the 157.30-45 area that, once cleared, would exacerbate a move towards 158.00.

On the flip side, the GBP/JPY first support would be February 4 daily high previous resistance-turned-support at 156.47, followed by 156.00 and the February 14 daily low at 155.29.