GBP/JPY Price Forecast: Trendline breakout puts 213.00 in sight

GBP/JPY advances about 0.16% at the time of writing on Monday and extends its rally for the third straight day, with the cross pair trading at 210.93 as it approaches the September 18 high of 211.28, the next key resistance ahead of the 50-day Simple Moving Average (SMA).

GBP/JPY Price Forecast: Technical outlook

Although the cross-pair seems to be gaining traction, a break of key resistance levels is needed for GBP/JPY buyers to retest mid-July or August levels in the 217.40-219.50 area before US and Japanese authorities intervene in the FX markets.

After clearing a downslope resistance trendline drawn from the September 18 high, GBP/JPY rallied 140 pips, exposing the 211.00 figure as the next area of interest. If buyers reclaim it, a move to the 50-day SMA at 211.57 is on the cards. This could put into play a test of the 212.00 mark, ahead of the 200-day SMA at 213.00, followed by the 100-day SMA at 213.50.

A bearish scenario resumes if GBP/JPY tumbles back below a downward resistance trendline, near 209.30. Beneath this area emerges the October 8 swing low of 208.20, followed by the September 30 cycle low of 206.89.

GBP/JPY Price Chart – Daily