GBPJPY
Technical outlook
Bullish scenario
According to the classical Dow Theory the pair is in a technical uptrend since the low in March 2020 with a higher highs and higher lows on a daily time frame. Currently the price is trading above the strong support level of 139.20 and closes above it for a couple of days already. This usually means that the GPBJPY is ready to try higher targets. The first one on the upside is 141.75 resistance level and if it is breached then the bulls will be targeting 144.25.
Bearish scenario
If the price breaks below 139.20 even for a day this could trigger a selling pressure and bears will aim for the next support level of 137.50.
Fundamentals
GBP being one of the strongest currencies recently, the appetite for risk around the Christmas time( which usually leads to selling the safe heaven currencies like JPY) and the huge expectations for vaccine to be fully approved could definitely triggers the bullish technical scenario.
Technical outlook
Bullish scenario
According to the classical Dow Theory the pair is in a technical uptrend since the low in March 2020 with a higher highs and higher lows on a daily time frame. Currently the price is trading above the strong support level of 139.20 and closes above it for a couple of days already. This usually means that the GPBJPY is ready to try higher targets. The first one on the upside is 141.75 resistance level and if it is breached then the bulls will be targeting 144.25.
Bearish scenario
If the price breaks below 139.20 even for a day this could trigger a selling pressure and bears will aim for the next support level of 137.50.
Fundamentals
GBP being one of the strongest currencies recently, the appetite for risk around the Christmas time( which usually leads to selling the safe heaven currencies like JPY) and the huge expectations for vaccine to be fully approved could definitely triggers the bullish technical scenario.