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  • GBP/JPY gained some positive traction during the early part of the European trading session.
  • The set-up favours bullish traders and supports prospects for a move towards 141.00 mark.
  • Only a sustained break below the 139.50-45 support zone will negate the positive outlook.

The GBP/JPY cross finally broke out of its intraday consolidation trading range and refreshed daily tops, around the 140.30 region during the early European session.

The UK Prime Minister Boris Johnson tempered optimism over the possibility of a last-minute Brexit deal and said that it was likely a deal wouldn’t be reached. This, in turn, exerted some pressure on the British pound and might cap the upside for the GBP/JPY cross.

Meanwhile, an offered tone surrounding the Japanese yen helped offset the negative factor. This was seen as one of the key factors that extended some support to the GBP/JPY cross and helped limit any meaningful downside, rather provided a modest lift in the last hour.

From a technical perspective, the GBP/JPY cross has been struggled to find acceptance and build on the momentum further beyond the 140.20-30 supply zone. This, in turn, warrants some caution for bullish traders and before positioning for any meaningful positive move.

Meanwhile, bullish technical indicators on daily/hourly charts support prospects for an eventual breakthrough the mentioned barrier. Hence, a subsequent move to monthly swing highs, around the 140.70 region, en-route the 141.00 mark, remains a distinct possibility.

On the flip side, any meaningful pullback below the 140.00 mark might still be seen as a buying opportunity and remain limited near the 139.50-45 region. Failure to defend the mentioned support then turn the GBP/JPY cross to slide back towards the 139.00 mark.

GBP/JPY 4-hourly chart

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Technical levels to watch