GBP/JPY consolidates around the weekly highs of 182.70s and prints a small candlestick, suggesting the uptrend is losing steam, despite reaching a fresh weekly high of 183.01. However, as the Asian session began, the GBP/JPY exchanged hands at 182.69, well below 183.00, after the Tenkan-Sen crossed above the Kijun-Sen level.
From a technical perspective, the GBP/JPY remains neutral to upward bias but must reclaim the last week’s high of 183.24 to threaten the year-to-date (YTD) high of 184.01. Even though the bullish cross of the Tenkan-Sen above the Kijun-Sen portrays the GBP/JPY as bullish, further confirmation is expected.
Otherwise, if GBP/JPY dives below the August 9 low of 182.36, it would exacerbate a pullback towards the top of the Ichimoku Cloud (Kumo). The GBP/JPY’s first support would be the Tenkan-Sen at 181.82, followed by a support trendline drawn from the lows of April, at 180.80/95, before slumping towards the Kijun-Sen at 180.15, inside the Kumo.