GBP/JPY Technical Outlook: Bullish Momentum Builds
The What price will ADA be in 5 years?GBP/JPY cross currency pair has demonstrated notable resilience this week, bouncing decisively from the 192.70-192.75 support zone that marked last week's low. This recovery has now extended into a second consecutive day of gains during Wednesday's European session, pushing prices toward weekly highs near the psychologically significant 195.00 level.
Technical Factors Supporting the Upside
Several technical elements currently favor GBP/JPY bulls:
- The pair found strong buying interest near the 200-day Simple Moving Average (192.70 area)
- Daily chart oscillators maintain positive territory
- Price action confirms higher lows from key support
These factors combine to suggest the path of least resistance remains upward, with potential for extension toward the 195.70 resistance area. A decisive break above 195.00 could accelerate momentum toward testing May's peak around 196.25-196.30.
Potential Upside Targets
Should bullish momentum continue, traders might anticipate:
- Initial test of 195.70 resistance
- Breakthrough of 196.00 psychological level
- Retest of May highs near 196.30
- Potential extension toward 197.00 (unseen since January)
The 197.40-197.50 zone could present interim resistance before any challenge of the 198.00 level and the year-to-date peak at 198.25.
Support Levels to Monitor
On pullbacks, traders should watch:
- 194.35 (daily low) as potential support
- 194.00 round figure as secondary support
- 193.45 intermediate support if downward pressure intensifies
The 200-day SMA near 192.70 remains the critical support level that must hold to maintain the current bullish structure.
Market Sentiment Considerations
While technical factors appear constructive, traders should remain mindful of broader market conditions that could influence GBP/JPY price action, including relative central bank policy expectations and risk sentiment in global markets.
