GBP/JPY Price Analysis: Move beyond overnight swing high to pave way for additional gains

GBP/JPY attracts some dip-buying and jumps back to the 137.00 neighbourhood.
The set-up favours bullish traders and supports prospects for further intraday gains.

Haresh Menghani FXStreet

Having shown some resilience below 100-hour SMA, the GBP/JPY cross regained positive traction and jumped to the 137.00 neighbourhood during the early European session. The subsequent move up pushed the cross beyond 200-hour SMA, with bulls now looking to extend the momentum back towards the overnight swing highs, around the 137.25 region.

Bullish technical indicators on hourly/daily charts support prospects for an extension of the intraday appreciating move amid an offered tone surrounding the safe-haven Japanese yen. Some follow-through strength beyond the 137.25-35 immediate hurdle will reaffirm the constructive outlook and pave the way for a move towards testing the 137.80-85 supply zone.

On the flip side, immediate support is now pegged near the 136.70 horizontal zone and is followed by the daily swing lows, around the 136.35 region. Failure to defend the mentioned support levels might prompt some technical selling and negate any near-term bullish bias, paving the way for a slide back towards challenging the key 135.00 psychological mark.

The latter coincides with monthly lows touched on October 2, which if broken decisively will be seen as a fresh trigger for bearish traders. The GBP/JPY cross might then turn vulnerable to extend the downfall towards the 134.55 intermediate support en-route the 134.00 round-figure mark and the recent daily closing lows, around the 133.65 region.

GBP/JPY 1-hourly chart

Technical levels to watch

GBP/JPY

Overview
Today last price	136.96
Today Daily Change	0.31
Today Daily Change %	0.23
Today daily open	136.65

Trends
Daily SMA20	136.08
Daily SMA50	137.64
Daily SMA100	136.58
Daily SMA200	136.43

Levels
Previous Daily High	137.26
Previous Daily Low	135.93
Previous Weekly High	137.86
Previous Weekly Low	135.4
Previous Monthly High	142.72
Previous Monthly Low	133.05
Daily Fibonacci 38.2%	136.75
Daily Fibonacci 61.8%	136.44
Daily Pivot Point S1	135.97
Daily Pivot Point S2	135.29
Daily Pivot Point S3	134.65
Daily Pivot Point R1	137.29
Daily Pivot Point R2	137.93
Daily Pivot Point R3	138.61

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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