GBP/JPY Classical Technical Report 02.21
GBP/JPY: The cross continues to show evidence of the formation of a meaningful base, with the recent break back above 122.05 confirming a higher low by 119.60 and opening a fresh upside extension. Next key resistance comes in by the October highs at 127.35 and we expect a test of this level over the coming sessions. However, daily studies are highly overbought so we would not rule out the potential for a short-term corrective pullback once 127.35 is tested. Still, any setbacks should now be very well supported above the 20-Day SMA on a daily close basis.
--- Written by Joel Kruger, Technical Currency Strategist
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