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GBP/JPY Breaks Above Range, Looking at 171.55

We saw GBP/JPY test the recent 2-week range resistance yesterday. After some initial reaction, the market eventually pushed the pair above the range, signaling a bullish outlook for the near-term.

(GBP/JPY 4H Chart)

The next key resistance could be in the 171.45-171.65 area, or around 171.55.

The 4H chart shows a sideways market as price oscillates above and below the 200-4H SMA. However, we do see the bullish bias in the daily chart.

(GBP/JPY daily chart)

Because the prevailing trending the daily chart is intact the current breakout rally could be a sign of bullish outlook for the medium term, for a few weeks or couple of months. If a subsequent pullback respects the broken consolidation area as a bottom, this bullish outlook strengthens.