GBP/JPY Price Analysis: Steady around 156.20s as bulls take a breather, eyeing 157.00

• The British pound advances some 1.02% during the week as Eastern Europe tensions escalate.
• US equities record losses in the day, while the so-called fear index, the VIX, reaches 30.43.
• GBO/JPY Technical Outlook: A bullish engulfing candle looms, which could pave the way for a move towards 157.00.

The British pound rises as the Ukraine – Russia conflict in Eastern Europe escalates. At the time of writing, the GBP/JPY is trading at 156.26.

The market sentiment remains fragile amid the escalation of the crisis. US equities remain in the red, while the CBOE Volatility Index (VIX), also known as the fear index, reaches the 30.43 mark.

During the overnight session for North American traders, the GBP/JPY edged lower towards 115.50 in the Asian session, consolidating in a range of 50-pips. Later, rallied towards the 156.50 area, retreating towards the 156.30s.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY is upward biased, as depicted by the daily moving averages (DMAs), which reside well below the spot price. Tuesday’s pullback witnessed some buying pressure lifting the pair around the February 14 daily low at 155.30, some 20-pips above the latter, accelerating a move towards 156.00. Furthermore, Tuesday’s price action is forming a “bullish-engulfing” candle pattern, which, once completed, would spur a rally towards 157.00.

In that outcome, the  GBP/JPY first resistance would be February 3 daily high at 156.50. Breach of the latter would expose January 18 daily low at 156.91, followed by February 18 daily high at 157.29.