The GBP/JPY broke above the triangle pattern and is showing very strong bullish momentum. Price is likely to continue higher due to the impulsive bullish price action but could find it difficult to break above the 38.2% Fibonacci resistance level.
The GBP/JPY is either building a wave 4 as part of a bullish retracement within the downtrend or is starting a new uptrend. The wave pattern will depend on the price reaction at the 38.2-50% Fibonacci levels. A break above the 50% Fib makes a bullish trend more likely whereas a bearish reversal at the Fibs could indicate more downside. A confirmation of the downtrend occurs when price breaks below the support trend line (purple).
The GBP/JPY has several clusters of resistance levels when analysing multiple resistance indicators such as the Pivot Points, Wizz levels, horizontal resistance levels and Fibonacci retracement levels. There are 3 main zones around 142.50-143, 143.50, and 144.25 but in our view the first two zones are most critical. Keep an eye on 4 hour and daily candles to see how price responds to the resistance, with a break or bounce.