GBP/JPY Technical Analysis: Range breakout bolsters already bullish setup

• The pennant breakout on the GBP/JPY pair indicates the revival of rally, as represented by the ascending trendline connecting the Aug. 15 low and Sept. 7 low.
• The 5-day and 10-day exponential moving averages (MAs) are trending north, indicating a bullish setup. A similar message is being delivered by the ascending 50-hour, 100-hour and 200-hour EMAs.
• The relative strength index (RSI) on the hourly and daily chart is also biased toward the bulls.
• All this, coupled with Brexit optimism indicates scope for a test of 150.00.

Hourly Chart

Spot Rate: 149.28

Daily High: 149.51

Daily Low: 149.07

Trend: Bullish

Resistance

R1: 149.42 (Oct. 1 high)

R2: 149.72 (Sept. 21 high)

R3: 150.00 (psychological level)

Support

S1: 149.10 (Sept. 26 high)

S2: 148.74 (5-day EMA)

S3:148.37 (10-day EMA)