GBP/JPY closes back in on a test of the upwards sloping trendline resistance
With sterling gaining against both the yen and the dollar, it has seen GBP/JPY touch a high of 148.98 on the day with a move towards the trendline mentioned looking very much on the cards once again.
Buyers tested the trendline yesterday but failed to hold a break above it in the end, and right now we're seeing a similar move of some sort. The trendline resistance is sitting at 149.13 now and has previously halted the pair's upside move in June as well.
This would be a key level for buyers to eye for and is a key level for sellers to lean on technically. But do note that just above it there's the 200-day MA (blue line) lurking nearby a@ 149.59 and that will be the "safety net" for sellers in case of a break higher. Further resistance is then seen at the 150.00 handle with offers lined up as well as the 38.2 retracement level holding there.
The next key risk factor for GBP/JPY will be the UK labour market report at 0830 GMT. Look out for that as the next catalyst to move the pair. As for downside levels, the 100-hour MA (red line) @ 148.25 is the next key support level to eye followed by the 50.0 retracement level @ 147.96.
