- GBP/JPY regains traction and turns higher for the fourth consecutive session.
- Bulls now await a sustained move beyond two-month-old descending trend-line.
The GBP/JPY cross reversed an early dip to the 142.00 neighbourhood and jumped to over one-week tops during the early North-American session on Thursday.
Bulls, however, struggled to extend the momentum further beyond the 143.00 round-figure mark, which is closely followed by resistance near the 143.25-30 region.
The mentioned barrier coincides with a near two-month-old descending trend-line and should now act as a key pivotal point for the pair’s next leg of a directional move.
Meanwhile, technical indicators on the daily chart have just moved in the bullish territory, albeit lacked any strong momentum and warrant some caution for bulls.
Hence, it will be prudent to wait for some follow-through buying beyond the mentioned barrier before positioning for any further near-term appreciating move.
The cross then might accelerate the momentum further towards its next major hurdle near the 144.00 mark with some intermediate resistance near the 143.70 area.
On the flip side, the 142.15-10 region now seems to act as immediate support, which if broken might negate the constructive outlook and prompt some technical selling.
GBP/JPY daily chart
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