GBP/JPY Technical Analysis: Fails to capitalize on overnight bullish breakout

   •  The cross failed to capitalize on the overnight bullish break through a 2-1/2 week old descending trend-channel formation and held on the defensive through the early European session. 

   •  Bulls, however, now seemed to show some resilience near 50-period SMA on the 4-hourly chart, also coinciding with a one-week-old trading range resistance break-point turned support.

   •  Technical indicators on 4-hourly/daily charts have managed to hold with a mild positive bias and support prospects for further gains, though Brexit uncertainties might cap strong gains.

   •  Hence, it would be prudent to wait for a strong follow-through buying to reaffirm a near-term bullish outlook and before traders start positioning for a further near-term appreciating move.

GBP/JPY 4-hourly chart