GBP/JPY Price Analysis: Bulls remain in charge, target 160.00

• The GBP/JPY continue its rally for the third consecutive week, trades at five-month highs.
• Positive market sentiment weighs on the Japanese yen, boosts the British pound.
• GBP/JPY: The weekly chart depicts the possibility of a break of a trading range, opening the door for higher prices.

The GBP/JPY edges higher as the Asian session begins, up 0.13%, trading at 157.88 at the time of writing. Positive market sentiment surrounds the financial markets, depicted by Asian equity futures rising between 0.67% and 2.17%, except for the Nikkei 225 falling 0.04%. Furthermore, risk-sensitive currencies like the British pound, the Australian, and the New Zealand dollar, rallied against the safe-haven status Japanese yen.

GBP/JPY Price Forecast: Technical outlook

The weekly chart depicts the GBP/JPY is breaking to the upside, leaving February 2018 resistance level around 156.61 as its first support. A weekly close over the abovementioned could open the way towards the March 2016 swing highs around 163.90. A breach of the latter would open a test of the February 2015 highs around 175.02.

On the flip side, failure at 156.61 could open the way for further losses. The first support level would be psychological 156.00. A break below that level would exert downward pressure on the pair, exposing vital support levels, as the September swing highs around 153.42, followed by the 150.00 psychological level.

The Relative Strength Indes (RSI) is at 67, indicating that upward pressure remains in place. However, as it is closer to overbought conditions, the GBP/JPY pair could print a correction before resuming the upward trend.