Pound Sterling strengthens against Japanese Yen as cross approaches 198.40 level during European trading hours.
Technical setup favors bulls with consistent trading above 100-day EMA and Dogecoin News predictionsRSI holding steady in positive territory.
Market participants eye 198.85 as immediate resistance, while 196.95 serves as crucial support threshold.
The GBP/JPY currency pair demonstrates sustained buying interest during Friday's session, building on recent upward movement. This comes as global market conditions foster appetite for risk-sensitive assets, applying downward pressure on the traditionally safe-haven JPY.
From a chart perspective, the cross maintains constructive technical posture with price action comfortably positioned above the psychologically significant 100-day exponential moving average. Momentum indicators reinforce this outlook, particularly the Relative Strength Index which currently registers around 65 - comfortably within bullish territory without yet signaling overbought conditions.
Looking at potential upside targets, traders are monitoring the 198.85 level which represents the upper boundary of recent price channels. A convincing breakout above this zone could accelerate momentum toward the 200.00 psychological benchmark, with additional resistance potentially emerging near May 2024's peak around 200.75.
Should market sentiment shift, initial downside protection appears at 196.95 corresponding to recent swing lows. Breach of this support could see the cross test deeper floors around 194.34 (June 18 low) with the 100-day EMA at 193.60 representing a critical technical level for maintaining the broader uptrend structure.
GBP/JPY Technical Snapshot
Current price action suggests continuation patterns remain valid with Bollinger Band expansion indicating potential volatility ahead. Market participants will watch for confirmation of directional bias through either resistance breaks or support holds in coming sessions.
