The GBPJPY cross has surged continuously over the previous weeks as both the GBPUSD and USDJPY pairs roared higher. On Thursday, traders decided to take some profits, bringing the cross somewhat lower on the day.
At the time of writing, it was trading half a percent weaker, seen at around 157.20. The last time the GBPJPY cross was here was just before the Brexit referendum in June 2016.
As long as Sterling trades above previous highs of 156, both short and medium-term outlooks seem bullish. If bulls fail to defend that support, we might see a larger correction toward previous resistance at 153.30.
Alternatively, the initial target for bulls is at this week’s highs of 158.00, with a possible breakout toward the psychological level of 160.
Sentiment remains positive, with the JPY being the weakest of the major currencies amid continuous dovish statements by officials and central bankers.