GBP/JPY Reclaims 156.00 Level, Might Now be Eyeing 157.00 Mark

GBP/JPY Reclaims 156.00 Level, Might Now be Eyeing 157.00 Mark

The GBP/JPY pair once again trashed bearish expectation of an accelerated downfall below 155.00 handle and has now soared back above 156.00 round figure mark.

The pair attracted fresh bids from sub-155.00 level, led by a survey result that showed higher number of voters supporting to stay with the EU. Moreover, the pair continues to suggest a possible bullish reversal, inverted head & shoulders, pattern formation with 154.50 as shoulder support. However, the pattern break-out level, which would confirm the bullish pattern, is still a milestone away from current levels.

The bid tone extended through the European session to lift the pair to a five day peak level of 1.5630. The pair is now comfortably trading above 156.00 handle and sustaining its strength above 5-day SMA for the first time in April 28.

Technical levels to watch

From current levels, the pair seems to immediately dart towards short-term moving averages (10,20-day SMAs) confluence resistance near 157.00 round figure mark. On a clear break through this immediate resistance, the pair seems all set to extend its recovery trend beyond 158.00 handle, towards 50-day SMA resistance near 158.50-55 region.

Meanwhile on the downside, weakness back below 156.00 mark is likely to find immediate support near 155.50-45 horizontal area. Failure to sustain its recovery and a subsequent drop back below immediate support level could bring 154.50 level support back in picture. A clear break below 154.50 level support should now drag the pair back towards retesting April lows support near 151.65-60 area.