GBP/JPY to mull another leg higher towards February 2018 highs at 156.14 – DBS Bank

GBP/JPY remains in good stead despite pulling lower from a recent 16-month high posted at 156.07. A break over 153.43 is something to look out for, according to Benjamin Wong, Strategist at DBS Bank. 

The technical indicators remain constructive

“The technical indicators remain supportive, pulling the cross from a higher low of 149.19 (vs 148.47) – the MACD (moving average convergence/divergence) is skewed positively while the RSI (Relative Strength Index) still has wiggle room to the upside.”

“For the cross to embark to higher grounds, there remains resistance moulded at 100-day moving average (DMA) of 152.83 and 153.43, which hosts the congestion zone.”

“On the monthly charts, GBP/JPY points towards 156.14, February 2018 highs. Taking out our Fibonacci extension ruler, a fully stretched 1.618% extension accords 159.26.”