GBP/JPY technical analysis: Stage seems set for a move towards testing 100-DMA, beyond 135.00 handle

The recent Brexit optimism continues to underpin the British Pound.
Bulls remain in full control near multi-week tops, above mid-134.00s.

Haresh Menghani FXStreet

The GBP/JPY cross continued gaining positive traction for the fifth consecutive session on Friday - also marking its seventh day of strong positive move in the previous eight - and climbed to fresh multi-week tops in the last hour.

The overnight bounce from 50% Fibo. level of the 137.80-126.54 downfall and a subsequent close above the 133.00 handle was seen as a key trigger for bullish traders and prompted some strong follow-through buying on Friday.

This coupled with the fact that the cross has now broken through 61.8% Fibo. level resistance support prospects for an extension of the recent recovery move from multi-year lows amid receding fears of a no-deal Brexit on Oct. 31.

From current levels, the cross might now aim towards surpassing the key 135.00 psychological mark and test its next major hurdle near mid-135.00 (100-day SMA), though near-term overbought conditions might keep a lid on any runaway rally.

On the flip side, the 134.00 round figure mark now seems to protect the immediate downside, which if broken might trigger some profit-taking move and accelerate the slide further towards mid-133.00s (61.8% Fibo. level).

GBP/JPY daily chart

GBP/JPY

Overview
Today last price	134.46
Today Daily Change	1.16
Today Daily Change %	0.87
Today daily open	133.3

Trends
Daily SMA20	130.32
Daily SMA50	131.6
Daily SMA100	135.46
Daily SMA200	139.51

Levels
Previous Daily High	133.65
Previous Daily Low	132.17
Previous Weekly High	132.19
Previous Weekly Low	126.67
Previous Monthly High	132.56
Previous Monthly Low	126.54
Daily Fibonacci 38.2%	133.08
Daily Fibonacci 61.8%	132.73
Daily Pivot Point S1	132.43
Daily Pivot Point S2	131.56
Daily Pivot Point S3	130.95
Daily Pivot Point R1	133.91
Daily Pivot Point R2	134.52
Daily Pivot Point R3	135.39

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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