GBP/JPY is holding a break above the 100-hour MA
That means that the near-term bearish bias in the pair has now turned to neutral but I’d wait for a break back above this week’s high of 144.41 for further confirmation of that. The pound is the best performing major currency on the day as it recovers some poise after bouncing off support levels across multiple charts and this is one of them.
As cable found support from the 1.2700 handle, GBP/JPY also leaned on support from the 76.4 retracement level @ 143.39 earlier this week before bouncing higher as we’re seeing now. There’s still a lack of a meaningful break back towards the upside but for buyers, finding a base is always a good thing.
If price starts to challenge the 200-hour MA @ 144.95, I’ll be more inclined to believe that we could see an extension back higher in the pair. Otherwise, this is still merely a correction on the way lower for the pound.