Talking Points:
- GBP/JPY has just set a fresh two-month high after finding a bit of resistance at the 76.4% Fibonacci retracement of the ‘Brexit move’ in the pair.
- GBP/JPY has put in strength so far in April, continuing the March advance after the February sell-off. The door remains open for topside as the pair continues to show signs of recovery after the aggressive sell-off that showed earlier in Q1.
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If you’re looking for longer-term analysis on GBP, JPY or the US Stocks, click here for our Trading Forecasts.
GBP/JPY Recovery Continues
GBP/JPY continues to show signs of recovery from the February sell-off when the pair shed more than 1,000 pips in less than a month. Support showed-up around the 145.00 psychological level on the second trading day of March , and after spending the rest of the month gyrating-higher, the pair has rallied into the 76.4% Fibonacci retracement of the Brexit-move in the pair.
GBP/JPY Daily Chart: Rally to 76.4% Fibonacci Resistance of the Brexit Move
Chart prepared by James Stanley
Going along with this bullish advance has been a break back-above the post-Brexit trend-line, and this had helped to offer multiple points of resistance in the month of March. In our last article, we looked at the premise of topside breaks back-above the 150.00 level to open the door for bullish exposure, and we took this a step further by focusing-in on the level of 150.80. This is the 50% retracement of the February sell-off in the pair, and at this point, this area can help to mark a zone with which bulls can look to for higher-low support.
GBP/JPY Four-Hour Chart: Higher-Low Support Potential Above 150.00
Chart prepared by James Stanley
On the hourly chart below, we’re incorporating a group of swing highs from late-March to help produce a support zone above the 150.00 psychological level. Price action finding support in this zone opens the door for topside exposure, targeting towards the 152.50 psychological level.
GBP/JPY Hourly Chart: Fibonacci Resistance Stalls Advance
Chart prepared by James Stanley
To read more:
Are you looking for longer-term analysis on GBP and/or JPY? Our DailyFX Forecasts for Q1 have a section specifically for each currency. We also offer a plethora of resources on our GBP/JPY page, and traders can stay up with near-term positioning in GBP/USD and USD/JPY via our IG Client Sentiment Indicator.
--- Written by James Stanley, Strategist for DailyFX.com
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