GBP/JPY technical analysis: Consolidates near 100-DMA/38.2% Fibo. confluence region ahead of BoE
- The cross continued with its struggle to capitalize on moves beyond 135.00 handle.
- Any meaningful pullback might continue to attract dip-buying near the 134.00 mark.
Barring the overnight intraday bullish spike to near two-month tops, the GBP/JPY cross remained confined well within its recent trading range and continued with its struggle to capitalize on intraday bullish moves beyond the key 135.00 psychological mark.
The mentioned handle nears a confluence barrier, comprising of 100-day SMA and 38.2% Fibo. level of the steep decline from the vicinity of the 149.00 handle to multi-year lows, which should act as a key pivotal point for the pair's next leg of a directional move.
Given that technical indicators on 4-hourly/daily charts have been holding in the positive territory and again started gaining traction on the 1-hourly chart, the set-up remains in favour of bullish traders and support prospects for a further near-term appreciating move.
However, traders are likely to wait for a sustained move beyond the overnight swing high - around the 135.50-60 region - before positioning for any further near-term appreciating move towards the 136.00 round-figure mark en-route 136.70-80 resistance zone.
On the flip side, any meaningful pullback might continue to attract some dip-buying interest and should help limit the downside near the 134.00 handle, which if broken might prompt some additional profit-taking and accelerate the slide further towards the 133.10-133.00 support.
GBP/JPY daily chart