GBPJPY – Testing above the pivotal 200DMA is providing an early signal of bullish continuation

GBPJPY climbed to a one-month high on Monday, signaling an initial bullish continuation after breaking above the top of a month-long range at 192.16, which is reinforced by the 200DMA.

A decisive break above this level would confirm the bullish signal, paving the way for further gains with an immediate target at 194.10 (the 50% retracement of the 208.11 to 180.09 downtrend). A move beyond this could expose the next resistance in the 197.00 zone.

The improving daily technical indicators, including a Tenkan-sen and Kijun-sen bull-cross and strong positive momentum, enhance the bullish outlook. However, the reaction around the 200DMA will be crucial.

Failure to clear the 200DMA would suggest a false breakout and could keep the pair in an extended sideways pattern.

Res: 193.25; 194.10; 195.86; 196.92
Sup: 192.16; 191.33; 190.79; 189.60