GBP/JPY Analysis: Bulls Set To Attack 155.00 Handle

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

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.