- GBP / JPY is moving in an uptrend, with momentum waning.
- Price corrected finding support around 153.50 / 60; a break to the downside would target 153.10.
The pound reached its highest level in years against the Japanese yen at 154.44 and then fell back. The correction so far extended to the 153.50 area, a horizontal support and also the 20 simple moving average chart in four hours.
Technical indicators are still pointing to the upside, but they also show some increasing odds of a deeper correction. A break below 153.50 would clear the way for an initial drop to 153.15. The strong support below is 152.75, where the GBP/JPY should recover.
A recovery above 154.00 would strengthen the pound for a test of the recent high. The next resistance could be seen at 154.80, before the strong 155.00 barrier.
In a broader perspective, as long as it is above 145.00 (long-term uptrend line), the outlook will remain constructive. The next long-term resistance is seen around 155.00. A clear monthly close above would point to higher gains.
4 hour chart
Technical levels
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