- The GBP/JPY cross quickly reversed an early European session dip to 134.30 area and rallied to the key 135.00 psychological mark in the last hour.
- The intraday positive momentum lifted the cross beyond a short-term descending trend-line, albeit struggled to make it through 200-hour SMA.
Meanwhile, technical indicators on hourly charts have been gaining positive momentum but maintained their bearish bias on the daily chart, warranting some caution for bullish traders and positioning for any further appreciating move.
However, a convincing breakthrough the mentioned handle is likely to prompt some aggressive short-covering move and pave the way for an extension of the recovery move towards the next resistance near the 135.45-50 region.
A follow-through buying might now negate any near-term bearish bias and set the stage for a move back towards conquering the 136.00 handle, which has been acting a key resistance area since the beginning of this month.
Alternatively, rejection slide from the current resistance zone now seems to find some support near mid-134.00s, below which the cross might turn vulnerable to slide back towards testing sub-134.00 level, or multi-month lows.
GBP/JPY 1-hourly chart
-636994796213136623.png)
Share
