- GBP/JPY moves within a bullish trend, with the momentum easing.
- Price corrected finding support around 153.50/60; a break lower would target 153.10.
The pound reached the highest level in years versus the Japanese yen at 154.44 and then pulled back. The correction so far extended to the 153.50 area, a horizontal support and also the 20 simple moving average in four hours chart.
Technical indicators still point to the upside but are also showing some increasing odds of a deeper correction. A break under 153.50 would clear the way for a slide initially to 153.15. The strong support below is 152.75, where GBP/JPY should rebound.
A recovery back above 154.00 would strengthen the pound for a test of the recent high. The next resistance could be seen at 154.80, before the strong barrier of 155.00.
On a wider perspective, while above 145.00 (long-term uptrend line) the outlook will remain constructive. The next long-term resistance is seen around 155.00. A monthly close clear above would point to further gains.
GBP/JPY 4-hour chart