GBP/JPY Rally Continues, Eyes on Key Resistance Level

The GBP/JPY currency pair continued its upward trend last week, and analysts believe this rally is consistent with the idea that a corrective fall from 219.56 has already completed. As a result, the initial bias remains on the upside for retesting the high of 219.56.

However, if the price falls below 216.20, the minor support level, it will turn the bias neutral and lead to consolidations before another potential rally.

In the bigger picture, a strong rebound above the 55-week Exponential Moving Average (now at 209.15) has maintained the uptrend from 123.94 (2020 low) intact. If the price breaks through 209.55, it is expected to target 243.51, which is 100% of the projection from 184.35.

However, if the sustained break of the 55-week EMA occurs, it will argue that a medium-term downtrend to 184.35 support has already begun.