- GBP/JPY trades in positive territory near 198.40 in Friday’s early European session.
- The positive view of the cross remains intact above the key 100-day EMA, with the bullish RSI indicator.
- The immediate resistance level emerges at 198.85; the first support level to watch is 196.95.
The GBP/JPY cross gains ground to around 198.40 during the early European session on Friday. The Japanese Yen (JPY) weakens against the Pound Sterling (GBP) due to improved risk sentiment.
Technically, the constructive outlook of GBP/JPY remains in place as the cross is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The upward momentum is reinforced by the Relative Strength Index (RSI), which stands above the midline near 65.00, displaying bullish momentum in the near term.
On the bright side, the first upside barrier for the cross emerges at 198.85, the upper boundary of the Bollinger Band. A decisive break above this level could pick up more momentum and aim for the 200.00 psychological level. Further north, the next resistance level is seen at 200.75, the high of May 28, 2024.
In the bearish case, the initial support level for the cross is located at 196.95, the low of June 24. A breach of this level could drag the cross toward 194.34, the low of June 18. The additional downside filter to watch is 193.60, the 100-day EMA.
GBP/JPY daily chart
