The GBPJPY cross was up nearly 1% today, boosted by the weakening Japanese Yen. At the time of writing, the cross was jumping above the 154 level, trading at four-month highs.

It looks like the medium-term consolidation has ended as the price has finally managed to decisively jump above the bearish trend line, which had been limiting the GBP for months. Additionally, the strong resistance of previous highs at 153.30 has also been cleared out, confirming the bullish momentum.

As long as the GBPJPY cross remains above 153.30, the short and medium-term outlooks seem bullish. Therefore, dips to this area are expected to be bought.

The key level of this breakout is at the mentioned bearish trend line, currently near 151.50, and if the price drops back below it, the bearish pressure could resume.

On the way higher, the next target for bulls will most likely be in the 155.50 zone, where the current cycle highs are seen. Should the Pound advance above 156, the long-term uptrend would be confirmed. 

Source: https://www.axiory.com/technical-analysis/gbpjpy-finally-breaks-above-bearish-trend-line

Share.

About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

Comments are closed.