GBP/JPY posts fresh 4-year highs above 158

FXstreet.com (Barcelona) - The GBP/JPY foreign exchange cross rate is currently trading at fresh 4-year highs marginally above the 158 handle, up +2% so far for the week on a combination of stronger Pound hitting fresh 3-month highs against USD and weaker Yen at 2-month lows against USD.

GBP/JPY opens up further upside risk

“GBP/JPY has remained bullish after a few months of consolidation,” said CMT and FXTimes Analyst Fan Yang, adding: “It might be a bit overbought in the near-term, but this rally opens up further upside risk. The weekly chart shows that the next key resistance for GBP/JPY is now at 163.08, the 2009-high. In the short-term, we might consider buying dips until near 163. At this point, a break below 154 will be needed to neutralize the bullish outlook.”

GBP/JPY key technical levels

Immediate support to the downside for GBP/JPY lies at recent session lows 157.80, followed by NY session lows at 157.56, and past Thursday's highs at 156.50. To the upside, closest resistance shows at recent mentioned fresh 4-year highs 158.06, followed by July 2009 highs at 159.98, and Nov 2008 highs at 161.69.