- GBP/JPY bullish momentum extends to the upside to challenge February high at 139.74
- The pair is trading above the key upward channel, clearing a two-month-old trend
- Short-term technical overbought conditions a warning signal for buyers
On Thursday, the pair made a decisive breakthrough the big round number 140.00 touching levels not seen since the beginning of March this year.
The GBP/JPY price action has been confined inside an uptrend-channel since late June. A daily break and close above the trend-channel can mark a shift in the sentiment and stretch out the current bullish run.
In the short term, the RSI oscillator has reached overbought conditions that can impair the bullish momentum. On the upside, traders are eyeing the 141.00 resistance level where the pair can take a rest.
With the buying interest remaining at elevated levels, any retracement in the pair has a limited scope both in time and price. On the downside, traders are eyeing the key support band 139.20-139.15.
If the mentioned support level fails, the bearish momentum can extend lower and target 138.00 followed by 137.80 figure as a next negative station.