GBP/JPY technical analysis: Set-up remains in favour of bullish traders, dip-buying to help limit any pullback
- Struggles to sustain above 133.00 handle and retreats from 61.8% Fibo. level.
- Reviving safe-haven demand seemed to be the only factor capping further gains.
The GBP/JPY cross continued with its struggle to sustain above the 133.00 handle and once again started retreating from a resistance marked by 61.8% Fibo. level of the 137.80-126.54 downfall.
With investors looking past the latest Brexit optimism, reviving safe-haven demand benefitted the Japanese Yen and seemed to be the only factors keeping a lid on any further up-move for the cross.
However, the fact that the cross has decisively broken through a confluence resistance earlier this week, the set-up remains in favour of bullish traders and support prospects for additional gains.
Moreover, technical indicators maintained their bullish bias on 4-hourly/daily charts and further add credence to the near-term constructive outlook amid receding fears of a no-deal Brexit.
Hence, any meaningful pullback seems to attract some dip-buying interest near the 132.00 round figure mark - 50% Fibo. level - and help limit the downside near the mentioned resistance breakpoint.
On the flip side, sustained move beyond the 133.00 handle, leading to a subsequent beyond the 133.35-40 region now seems to set the stage for an extension of the recent recovery move from multi-year lows.
GBP/JPY daily chart