GBP/JPY Reaches New Multi-Year High

GBP/JPY continues its unobstructed uptrend, hitting a new multi-year high (the highest since 2008) early Monday.

The pair has extended its steep ascent for the eleventh consecutive day, following its sixth straight monthly gain in June.

The yen has weakened further against all major currencies due to a dovish Bank of Japan (BoJ) stance, despite the threat of intervention, as Japanese authorities signal readiness to support the falling currency.

The price has established itself above the psychological 200 mark (also near the 61.8% Fibonacci retracement of the 251.08/116.95 downtrend from 2007 to 2011), following the second monthly close above this level.

Bulls are targeting 205.62 and 206.45 (the 238.2% and 261.8% Fibonacci projections of the uptrend from the 197.20 higher low), which protect the 210 round-figure barrier, currently ignoring the threats of intervention.

However, strongly overbought conditions on the daily chart indicate that bulls may take a breather in the coming sessions.

The rising 10-day moving average (202.32) offers solid support, which should ideally contain dips and maintain lower pivots at 201.00/200.00 (20-day moving average/psychological).

On the other hand, the pair would accelerate lower if Japanese authorities decide to intervene.

Res: 204.27; 205.62; 206.45; 207.80
Sup: 203.17; 202.32; 201.00; 200.00