GBP/JPY: making strong gains 7/9/2022

The British pound jumped against the Japanese yen, achieving remarkable gains during the previous trading session, reaching its highest level of 165.42 at the opening of today’s trading session.

Technically, with the pair’s success in building a support base of 164.40, is accompanied by obtaining a positive stimulus from the simple moving averages that continue to carry the price from below, coinciding with the positive signals coming from the relative strength index.

Therefore, the bullish scenario remains valid and effective, targeting 166.50 the first target, knowing that the breach of the mentioned level will extend the pair’s gains to be waiting for touching 167.50 unless we witness any trading below 163.40 and most importantly 163.00.

Alert: Stochastic is about overbought areas on an intraday basis.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 163.00	R1: 166.50
S2: 160.70	R2: 167.75
S3: 159.50	R3: 170.05