GBP/JPY technical analysis: Holds steady near 200-hour EMA, bulls await a sustained move beyond 135.00 mark
- The GBP/JPY cross rallied over 70-pips from intraday lows and is now looking to extend the momentum further beyond 200-hour EMA.
- Technical indicators on hourly charts have been gaining positive traction and support prospects for an extension of the intraday positive move.
However, given that the cross has repeatedly failed to find acceptance above the mentioned barrier, traders are likely to wait for a strong follow-through buying beyond the key 135.00 psychological mark before positioning for any further near-term appreciating move
Moreover, oscillators on the daily chart are yet to catch up with the positive momentum and are far from signalling that a near-term bottom is already in place, warranting caution for bullish traders amid persistent fears of a no-deal Brexit and reviving safe-haven demand.
Having said that, a sustained move beyond the mentioned handle might prompt some aggressive short-covering move and accelerate the recovery further towards 135.40 intermediate resistance before the cross eventually aims towards reclaiming the 136.00 round figure mark.
On the flip side, immediate support is now pegged near mid-134.00s, below which the cross might turn vulnerable to slide back towards testing sub-134.00 level - multi-month lows support set last Thursday, en-route the next major support near the 133.50-40 region.
GBP/JPY 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
