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GBP/JPY Analysis: Bulls Set To Attack 155.00 Handle

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Having clocked a low of 146.97, the GBP/JPY cross closed last month higher at 152.21 levels. The currency pair gained 0.86 percent. The technical chart shows potential for a rally to 155.00 levels ahead of the year-end.

Monthly chart

fx1.jpg

Source: CME

The above chart shows-

  • Bullish ascending channel breakout in September.
  • In the last 2 months, the cross has shaken out weak bulls (dips below the former triangle resistance turned support was short-lived).
  • Last month's bullish candle engulfed previous month's (Oct) doji candle.
  • For two months, the cross has closed above 150.53 (38.2% Fib R of Jun. 2015 high - Oct. 2016 low).
  • 5-MA and 10-MA are sloping upwards in favor of the bulls.
  • 5-MA  and 100-MA bullish crossover.
  • Previous three candles closed above 148.47 (23.6% Fib R of Jul. 2007 high - Sep. 2011 low).

View

  • Clearly, the odds are stacked in favor of the bullish move towards 155.00 and possibly to 160.00 levels.
  • On the downside, only a break below 149.31 (100-MA) would abort the bullish view, while a close below 10-MA could turn the tables in favor of bears.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: FXStreetEurozone Forex Markets

 

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