- GBP/JPY finds support again 154.80, area reinforced by uptrend line.
- Pound needs to recover 155.50 to gain momentum.
The GBP/JPY continues to move with a bullish bias, but in the short term, the momentum eased. The pound needs to recover above 155.50 (horizontal resistance and 20-SMA in four hours chart) to gain momentum and point to a potential test of the 156.00 area.
The current correction from multi-year highs is being limited for now. A critical level is 154.80. A firm break below would suggest more losses ahead, with an immediate target at 154.40. Below, the next strong support stands at 153.60. With price under 155.50, the odds of another test of 154.80 remain elevated.
In the broader picture, while above 145.50/70 (long-term uptrend line) the outlook will remain constructive for the pound.
GBP/JPY 4-hour chart
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