GBP/JPY Technical Analysis: Set-up seems tilted in favour of bullish traders

• Regains traction and reverses the previous session’s dip to over 1-month lows.
• Any meaningful fall towards 200-day might still be seen as a buying opportunity.

The GBP/JPY cross stalled its recent pullback from multi-month tops, levels just above mid-141.00s, and managed to regain some positive traction on the first day of a new trading week.

The positive move helped the cross to reverse the previous session’s downfall to near one-month lows and reclaim the key 140.00 psychological mark, albeit lacked any strong follow-through.

Looking at the technical picture, the cross remains well within its recent consolidative trading range held since mid-October, around the 61.8% Fibonacci level of the 148.88-126.54 downfall.

Given that the cross has been consolidating above the very important 200-day SMA, the near-term set-up seems tilted in favour of bullish traders and support prospects for additional gains.

Moreover, technical indicators on the daily chart have managed to hold in the positive territory and further reinforce the near-term constructive outlook amid the UK political optimism.

Hence, any meaningful dips below the 139.00 handle might still be seen as buying opportunity, though bulls are likely to wait for a sustained move beyond mid-141.00s (recent swing highs).

GBP/JPY daily chart