GBP/JPY Price Analysis: Bullish candlesticks formations paved the way to 161.00 and beyond

• The GBP/JPY advanced on Friday, recording gains of 0.57%.
• A positive market mood boosts risk-sensitive currencies like the GBP, weighing on safe-haven peers, like the yen.
• GBP/JPY Price Forecast: The “inverted hammer” and a “bullish harami” confluence keep the uptrend intact.

The GBP/JPY snaps three days of losses and jumps off Thursday’s losses amid a shift from a dismal to a favorable market mood, despite the continuation of Rissian’s invasion of Ukraine and market players’ worries about global inflation. At press time, the GBP/JPY is trading at 160.71.

Reflection of the positive market mood is European and US equities recording gains. Meanwhile, US Treasury yields surge, led by the short-end of the yield curve, with 2s and 5s rising more than the 10s and 30s, inverting the yield curve for the second time in three days.

Meanwhile, the Russia-Ukraine war continues for the fifth straight week. On Thursday, Russian President Putin stated that natural gas payments in roubles are irreversible and gave ten days of grace to European customers.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY jumped off the 160.00 mark and is testing Thursday’s daily high at 160.88, but short of it. On Thursday, I noted that “a “quasi” gravestone doji” was forming; instead, an inverted hammer showed up, and it is worth noting that Thursday’s price action formed a bullish harami.

That said, the GBP/JPY uptrend is still intact, and the previous days’ price action formed a bottom around the 159.00-160.00 area. Upwards, the GBP/JPY first resistance would be 161.00. Breach of the latter would expose March 30 high at 161.36, followed by 162.00

Technical levels to watch for