GBP/JPY rises again to test 128.00

GBP/JPY is rising on Wednesday erasing yesterday’s losses. It is back near the key short-term resistance located around 128.00. 

On Tuesday the pair finished lower after reversing from the highest level in almost a week at 127.93 and dropped to 126.60. Today it gained momentum during the European session and extend gains on American hours. Recently it printed a fresh daily high at 127.88 and remain near the highs holding a bullish tone.

Levels to watch 

Price is back near the 128.00 handle that has become a key resistance. A consolidation on top could open the doors for further gains. Near 128.00, at 128.50 (20-day moving average) there is another important resistance, so a consolidation on top of 128.50 would signal a bullish continuation with a possible target around September lows located at 129.55/60. 

A failure to break above 128.00 could signal some weakens for the pound and suggest a continuation of the consolidation in the range between the mentioned upper limit and 126.00. A break below 126.00 could lead to a test of October lows at 124.70/80.