GBP/JPY Price Analysis: Holds steady near 140.00 mark, over 1-week tops ahead of BoE

• GBP/JPY continued scaling higher for the fourth consecutive session on Thursday.
• Move beyond the 140.20-25 is needed to support prospects for additional gains.
• The 139.50-45 region now holds the key for bulls and should act as a strong base.

The GBP/JPY cross built on this week’s positive move and continued scaling higher for the fourth consecutive session on Thursday. The momentum pushed the cross back above the key 140.00 psychological mark, summing up to 340 pips rally from over one-month lows touched last Friday.

Growing optimism about the possibility of a last-minute Brexit deal was seen as a key factor that continued underpinning the British pound. This, along with the upbeat market mood, dented the Japanese yen’s relative safe-haven status against its British counterpart and remained supportive.

Despite the supporting factors, the GBP/JPY cross struggled to extend the momentum further beyond the 140.20-25 supply zone. This, in turn, warrants some caution for bullish traders and before positioning for any further near-term appreciating move ahead of the BoE policy decision on Thursday.

Meanwhile, technical indicators on the daily chart have been gaining positive traction and 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, looks a distinct possibility.

On the flip side, any meaningful pullback might be seen as a buying opportunity near the 139.50-45 region. Failure to defend the mentioned support will reinforce a strong barrier near the current levels and turn the GBP/JPY cross vulnerable to accelerate the slide towards the 139.00 mark.

GBP/JPY daily chart

Technical levels to watch