GBP/JPY has risen well above the 141.00 level on a strong pound sterling that’s performing better against its major peers especially the US dollar. At the time of writing the pair is trading at 141.81 with immediate resistance at 142.36. Another resistance can also be seen around the 142.78 level.
The near term support is at 141.44 while the 141.00 is likely to act as a strong support area. The SMA-21 is indicating support at 139.42 and the SMA-50 is showing support at 136.84.
The Relative Strength Index is at 66 and favors further upwards movement. The multi timeframe analysis suggests that the pair is equaly bullish on the weekly charts as well as on intraday and 4-hourly charts. The analysis also suggests that the continuous upwards pressure could well be a reason to test the trendline resistance area at 145.00. On the intraday scale, the pair is
offering a reasonable buy opportunity with an entry-level at 141.45.
The target would be relatively small which is between 40 to 50 pips. A tight stop-loss for this trade will be at or slightly below the 141.00 level.
Closing above 142.00 would further accelerate the uptrend. On the downside, bears would require closing below 140.50 to get some control