GBP/JPY Price Analysis: Breakout of a prolonged consolidation demands a re-test at 158.00

• GBP/JPY is likely to pull back near 158.00 after a prolonged consolidation breakout.
• Rising 20 and 200-period EMAs add to the upside filters.
• The RSI (14) has settled in a 60.00-80.00 range, which signals more gains ahead.

The GBP/JPY pair has surrendered its weekly gains after facing resistance above 164.00. The selling pressure at elevated levels seems to be a corrective pullback after a winning streak of three trading weeks.

On the weekly scale, the asset has asset given a breakout of nine months of prolonged consolidation last week. The cross was auctioning in a flat channel, which signals an extreme volatility contraction. The asset has advanced higher after given a breakout of the consolidation, which placed in a range of 148.46-158.22.

The 20 and 200-period Exponential Moving Averages (EMAs) at 155.43 and 147.26 respectively are scaling higher, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which indicates a fresh impulsive wave going forward.

Should the asset test the upper end of the flat channel near 158.00, the cross will start advancing towards the previous week’s high at 161.50, followed by monthly highs at 164.65.

On the contrary, yen bulls may dictate the price if the cross drops below the previous week’s low at 156.38, which will drag the asset towards the round level support at 154.00. Breach of the latter will send the asset towards the 50 EMA at 152.71

GBP/JPY weekly chart