GBP/JPY Surges Past 157.00 Handle to Nearly Test 158.00 Level

GBP/JPY Surges Past 157.00 Handle to Nearly Test 158.00 Level

Extending its bid tone, the GBP/JPY pair surged past 157.00 handle and rose to 157.92, within striking distance of tapping 158.00 level.

The pair has been gaining momentum on the back of weakness in the Japanese currency across the board and has gained traction in the past few hours, piercing through 20-day SMA resistance near 157.00 handle. The pair has now recovered over 400-pips from last week's low level of 153.86 and now seems to dart towards 50-day SMA.

Technical levels to watch

From current levels, a subsequent buying interest has the potential to lift the pair beyond 158.00 round figure mark, towards testing 50-day SMA resistance near 158.60-65 area. With RSI reading on H1 and H4 already pointing to near-term overbought conditions, the pair seems more likely to take a breather at higher levels.

Meanwhile on the downside, 100-SMA on H4 near 157.20 level now seems to provide immediate support. Weakness below 157.20 immediate support could get extended, but is likely to be restricted at 156.75-70 horizontal area. Only a sustained weakness back below 156.75-70 support would negate the near-term bullish bias for the pair.