The GBP/JPY is rallying sharply. Let’s take a look at its charts to assess the current technical development.
After putting in a price bottom, GBP/JPY price rebounded and broke above 180 last week. This week, price retreated but respected the price bottom. The technical conditions based on price action and the RSI show a bullish reversal, while the moving averages have not caught up yet.
As price approaches 184, traders will see a falling trendline coming down from the 2014-high at 189.70. We should expect resistance here. However, if the market holds the pair above 180, the 184 resistance will become more vulnerable. A break above 184 could open up the 189.70 high.
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