GBP/JPY Price Analysis: The first upside target is seen above 200.50
- GBP/JPY hovers around 200.00 in Tuesday’s early European session.
- The cross keeps the positive stance above the 100-period EMA on the 4-hour chart, with a bullish RSI indicator.
- The first upside target is seen at 200.60; the initial support level is located at 199.40.
The GBP/JPY cross holds positive ground near 200.00 during the early European session on Tuesday. The interest rate differential between the United Kingdom and Japan continued to undermine the Japanese Yen (JPY) and create a tailwind for GBP/JPY. However, the verbal intervention from Japanese authorities might cap the upside for the cross in the near term.
Technically, the bullish outlook of GBP/JPY remains intact as the cross holds above the key 100-period Exponential, Moving Average (EMA) on the 4-hour chart. The upward momentum is supported by the 14-day Relative Strength Index (RSI), which stands in bullish territory around 54.0. This indicates that the path of least resistance level is to the upside.
The immediate upside target will emerge near the upper boundary of Bollinger Band at 200.60. A bullish breakout above this level will pave the way to the 201.00 psychological mark.
On the flip side, the initial support level for the cross is seen near a low of June 3 at 199.40. The next contention level to watch is the lower limit of the Bollinger Band at 199.16. Further south, the key barrier is located at the 100-period EMA at 198.60.
