GBP/JPY Price Forecast: An upside break of a bullish-flag paves the way towards 156.00

GBP/JPY advances as good UK’s economic employment data boosted the British pound.
The market sentiment is upbeat, lifting risk-sensitive currencies, dampening the risk appetite of safe-haven peers.
GBP/JPY: An upside break of the bullish-flag chart pattern would expose 156.00.

The British pound advances against the Japanese yen, up 0.02%, trading at 154.19 during the day at the time of writing. Positive market sentiment through the New York session seems to carry on towards the Asia-Pac Wednesday one, as major Asian equity indices futures advance, between 0.03% and 0.82%.

In the European session, positive economic data from the UK lifted the pound. The ILO Unemployment Rate for the last 3-month reading ending in September rose to 4.3%, lower than the 4.4% expected, as the furlough scheme program ended in September.  Also, the Claimant Count Change for October dropped by 14.9K less than the 51.1K contraction in September.

The GBP/JPY pair jumped from 153.20s towards 153.86 at the release before settling around the 153.40-60 range. As the American session began, the cross-currency broke to fresh two-week highs, around 154.15.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY pair broke above the 50-day moving average (DMA) in the daily chart, accelerating towards the top-trendline of a bullish flag chart pattern formation. Further, all the DMA reside below the spot price, boosting the upward bias of the pair. Momentum indicator like the Relative Strength Index (RSI) at 50.11, though barely above the 50-central line, adds another bullish signal.

If GBP/JPY buyers want to accelerate the uptrend, they will need a break above the top-trendline of the bullish-flag chart pattern. In that outcome, the first resistance would be the 155.00 psychological round level. A breach of the latter would expose the November 4 high at 156.25, followed by the October 29 high at 157.10.