• GBP/JPY bulls have stepped back in to take out session highs.
• The bulls have their eyes set on daily highs. 

GBP/JPY is on the march in Tokyo after a clear out on the downside in the open. The price is elevated and moving higher on the daily time frame with the prior highs eyed for another test. However, the W-formation is a bearish reversion pattern that could draw in the price to the neckline at any time. 

GBP/JPY daily chart

GBP/JPY H1 chart

The bullish inverse head and shoulders are promising for the upside prospects. 

GBP/JPY M15 charts

A bullish scenario is illustrated in the following analysis in the 15-minute chart:

The price has moved in on the M-formation's neckline but has established a potential level of support of around 164.35. If this were to hold, then the price could attract further demand for a surge beyond the session highs printed in the opening hour of Tokyo. 

On the other hand, the price has yet to revisit the prior order block from where the rally took off, so there is a possibility that once the price fulfils the meanwhile objective to the upside, a reversal could take shape and the following illustrates a potential price trajectory/ in such a case: