Overview:
GBP/JPY is consolidating with bullish bias. The rate is underpinned by strong investor risk appetite; positive GBP sentiment and aggressive BOJ monetary easing stance as demand from Japan importers. But GBP/JPY gains tempered by Japan exporter sales. Daily chart is positive-biased as MACD and stochastic are bullish, although latter is at overbought; five- and 15-day moving averages are rising.
Corrective weakness from Friday's 126.97 high would attract strong support above 146.65. A retest of the 148 high is expected in the coming sessions once a base above 146.6 has been forged, and the powerful GBP uptrend has room for a push higher towards the 147area, longer term. Only a break below 144.75 would create room for additional corrective weakness towards 144.25 and 143.35.
Preference:
Buy above 144.75 with targets at 146.65 and 147.3 in extension.
Resistance levels:
R1 - 146.65
R2 - 147.3
R3 - 147.9
Alternative scenario:
Sell below 144.75. Below 144.75 look for further downside with 144.25 and 143.35 as targets.
S1 - 144.25
S2 - 143.35
S3 - 142.75
Technical comment:
The RSI calls for a new upleg.
