GBP/JPY Price Analysis: The pound approaches trendline resistance at 140.00

GBP/JPY's rally extends to levels near 140.00 resistance area.

Brexit hopes and COVID-19 vaccines have boosted pound's demand.

The sterling appreciated for the third consecutive day on Tuesday, buoyed by the positive market mood, to hit session highs at 139.85 before pulling back to the mid-range of 139.00.

The progress on the developments of diverse COVID-19 vaccines has spurred hopes of a cure that might alleviate the devastating economic impact of the pandemic, fuelling investor’s appetite for risk. Beyond that, the widespread confidence about a Brexit deal, even a basic one, has contributed to underpinning demand for the cable.

GBP/JPY approaching important resistance at 140.00

The pair has turned down from 139.85 high on Tuesday, just 15 pips shy of the downward trendline resistance from early September highs. Technical indicators are pointing upwards on daily charts, with the RSI approaching overbought levels, which might anticipate a downward correction before further appreciation.

On the upside, above the mentioned 140.00 trendline resistance, the next area of interest might be 140.35 (November 11 high) and 141.45 (September 4 high). On the downside, immediate support lies at 139.00 (intra-day level) and below here, 137.20 (November 19 low) and the 50-day SMA, now at 136.65.

GBP/JPY daily chart

GBPJPY daily chart

Technical levels to watch


Today last price 139.56
Today Daily Change 0.30
Today Daily Change % 0.22
Today daily open 139.26
Daily SMA20 137.2
Daily SMA50 136.54
Daily SMA100 137.18
Daily SMA200 135.72
Previous Daily High 139.29
Previous Daily Low 137.89
Previous Weekly High 138.87
Previous Weekly Low 137.2
Previous Monthly High 137.86
Previous Monthly Low 134.41
Daily Fibonacci 38.2% 138.75
Daily Fibonacci 61.8% 138.42
Daily Pivot Point S1 138.34
Daily Pivot Point S2 137.41
Daily Pivot Point S3 136.94
Daily Pivot Point R1 139.74
Daily Pivot Point R2 140.21
Daily Pivot Point R3 141.14




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