GBP/JPY Technical Analysis: Biased bullish but 200-day MA is capping gains

GBP/JPY is struggling to break past the 200-day moving average (MA) despite the US-China trade optimism and the resulting risk-on.

The technical bias remains bullish, as the 5- and 10-day moving averages (MAs) are trending north. The RSI is biased bullish above 50 and the flag breakout - a bullish continuation pattern - confirmed on Feb. 19 is still valid.

As a result, the 200-day MA, currently at 144.88, could be scaled soon. As of writing, the pair is trading at 144.470. A close below the ascending 10-day MA, currently at 143.41, would invalidate the bullish setup.

Daily chart

Trend: Bullish