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GBP/JPY - Bullish Continuation to Threaten the 2015-High

Yesterday, I was looking at the consolidation in GBP/JPY. Essentially, it was a flag, wedge type of consolidation in the very short-term within an uptrend in the medium-term, so the anticipation was that it will be in a bullish continuation breakout.

GBP/JPY 1H Chart 8/5
(click to enlarge)

The 1H chart shows that the breakout did materialize during the 8/5 session as price rallied sharply above the cluster of 200-, 100-, and 50-hour simple moving averages (SMAs). The RSI also held above 40 and now ascended to 80, showing maintenance and persistence of the bullish momentum. 

With the current consolidation broken, the 194 area should provide support if there is a bearish correction. 

GBP/jPY Daily Chart 8/5

(click to enlarge)

If price can hold above 194, there is upside risk at least back to the 2015-high at 195.88 and the 196 handle. The V-shape reversal after a bearish correction in July suggests that price has a good chance of breaking those highs/resistance around 196, with upside risk towards 200 in the medium-term.