After an early ping pong pause at target levels, the pair shot higher.
In a post yesterday (on other GBP pairs technicals) I outlined levels of importance for the pair after the sharp moves higher. Below is the chart from that post.
At the end of yesterday and into the Asian session, the price of the pair ping-ponged between the 134.60 level above and the 133.86-99 level below. The price based one last time at the support area (yellow area), broke above the 134.60 level and did not look back. This is what that looked like:
Taking a broader look at the daily chart, the pair has moved above swing levels and currently is testing the 50% retracement of the 2019 trading range at the 137.702 level. The price is also trading at the highest level since June 2019. There is some pause around the midpoint. However, the buyers still remain in control, and the lure of the 200 day above at 138.588, may be the magnet target for the move.
The GBPJPY is getting a double boost from hope for Brexit and hope from US/China (that is propelling stocks and yields higher). That is the right cocktail for the explosive currency pair.