GBP/JPY remains in good stead despite pulling lower from a recent 16-month high posted at 156.07. A break over 153.43 is something to look out for, according to Benjamin Wong, Strategist at DBS Bank.

“The technical indicators remain supportive, pulling the cross from a higher low of 149.19 (vs 148.47) – the MACD (moving average convergence/divergence) is skewed positively while the RSI (Relative Strength Index) still has wiggle room to the upside.”

“For the cross to embark to higher grounds, there remains resistance moulded at 100-day moving average (DMA) of 152.83 and 153.43, which hosts the congestion zone.”

“On the monthly charts, GBP/JPY points towards 156.14, February 2018 highs. Taking out our Fibonacci extension ruler, a fully stretched 1.618% extension accords 159.26.”

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