- GBP/JPY prolonged its recent bullish trend and jumped to the highest level since late February.
- The momentum marks a bullish breakthrough a two-month-old upward sloping trend channel.
- Slightly overbought RSI on hourly/daily charts warrants caution before placing fresh bullish bets.
The GBP/JPY cross surged past the key 140.00 psychological mark and shot to the highest level since late February during the mid-European session on Thursday.
The mentioned level represented the top boundary of an ascending trend-channel extending from late June. A move beyond marks a fresh breakout and might have already set the stage for an extension of the near-term bullish trend.
Meanwhile, RSI (14) on hourly/daily charts is pointing to slightly overbought conditions and warrant some caution for bullish traders. That said, the cross now seems poised to aim towards reclaiming the 141.00 round-figure mark.
On the flip side, any meaningful pullback might now be seen as a buying opportunity. This, in turn, should help limit the downside near the previous strong horizontal resistance breakpoint, now turned support near the 139.20-15 area.
Failure to defend the mentioned resistance-turned-support might prompt some technical selling and drag the cross back towards sub-138.00 levels, important horizontal support near the 137.80 region.
GBP/JPY 4-hourly chart