GBP/JPY rises to a high of 147.49 on the day
Yen pairs are on the up as the session begins with European equity futures starting off with some positive tones but also Italian assets are set to begin the week with a decent rally – and that will continue to underpin risk sentiment on the session.
US equity futures are also staging a decent enough recovery on the day and that is underpinning other major currencies against the yen at the moment. Of note, GBP/JPY is looking to break above the 100-hour MA (red line) now after two failed previous attempts since Friday.
Hold a break above that and the near-term price bias turns undefined from being more bearish previously. There’s also further resistance nearby from the 200-hour MA (blue line) @ 147.57 and break above that and near-term price bias turns more bullish next.
Looking at the daily chart, the bounce off the lows seen on late Thursday coincided with support from the 100-day MA (red line) and the 61.8 retracement level. The next key level that buyers will now eye for will be the 200-day MA (blue line).
However, the key upside resistance remains that of the July high @ 149.32. Until price breaks above that, the upside move here will still be contained as we have seen so far in September and October trading.