Stronger Momentum, trading above 200-SMA suggests further upside.
Bears require validation starting at 155.00 to retake controls.
GBP/JPY moves higher around the weekly high, but is still close to 156.35-40 during Wednesday’s Asian session.
The cross-currency pair faces 50-SMA resistance at 156.50, which is enough to justify the Momentum indicator’s upside momentum and the pair’s ability stay above the 200-SMA.
The GBP/JPY’s short-term gains are hampered by the line at the top of a three-week-long, symmetrical triangle that is near 157.00.
If the quote goes beyond 157.00, the October 2021 peak around 158.25 and the monthly high of 158.56 can be used as buffers to help with the rally towards the 16.00 threshold.
On the other hand, pullbacks may initially target the 200-SMA near 155.85, before moving the GBP/JPY buyers towards the triangle’s support line, at 155.50 or later.
The traders will be able to filter out the downside risk by looking at the February lows of 155.00 in the early days of February, even if the pair falls below 155.50.
GBP/JPY Chart for Four Hours
Future upside is expected to continue
