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  • GBP/JPY gains some traction and recovers further from near one-week lows set on Monday.
  • The bias seems tilted in favour of bulls, albeit intraday set-up warrants some caution.

The GBP/JPY cross gained some positive traction on Tuesday and built on the previous session’s late rebound from the vicinity of a support marked by 61.8% Fibonacci level of the 140.93-144.96 positive move, or near one-week lows.

The uptick, however, lacked any strong follow-through, with bulls still awaiting a sustained move beyond 200-hour SMA. The mentioned hurdle coincides with 38.2% Fibo. level and should act as a key pivotal point for intraday traders.

Mixed technical indicators on hourly charts haven’t been supportive of any firm intraday direction. However, the fact that the oscillators on the daily chart have managed to hold with a mild positive bias support prospects for additional gains.

Some follow-through buying beyond the daily swing high level of 143.65 will reinforce the bullish outlook and lift the cross towards the 144.00 mark. The latter also coincides with 23.6% Fibo. level and might act as a key trigger for bulls.

On the flip side, the 143.00 round-figure mark now seems to protect the immediate downside, which if broken now seems to accelerate the slide back towards challenging support near the 142.60-50 region (61.8% Fibo. level).

GBP/JPY 1-hourly chart