GBPJPY continues to trend higher and looks for retest of 2022 high
The GBPJPY extends steep ascend into tenth straight day, hitting the highest since Apr 22 on Tuesday, in extension of Monday’s strong acceleration (the pair was up 1% for the day in the biggest daily advance since May 17).
Weak yen on widening gap between the Fed and BoJ policies and rising costs was the main contributor as sterling is still without clear direction against dollar, due to mixed fundamental factors.
The cross generated fresh bullish signals on rise above the top of thick daily cloud on Monday and today’s break of Fibo level at 165.39 (76.4% of 168.42/155.60 downleg), with close above the latter to verify bullish signal and open way towards key barriers at 168.34/42 (Fibo 61.8% of larger 195.85/123.83 downtrend / 2022 peak, the highest since Feb 2016).
Daily techs in full bullish setup underpin the action, though overbought conditions may slow bulls.
Potential corrective dips are expected to find support above daily cloud top (163.63) and offer better buying opportunities.
Res: 167.58; 167.91; 168.42; 170.00
Sup: 165.39; 164.12; 163.63; 162.90