GBP/JPY Price Analysis: The pound breaks higher to test 135.00 area

• GBP/JPY breaks beyond the top of the recent range, at 133.70 to test prices above 135.00
• The pair was capped at 135.10 and pulled back to 134.50 area.
• Near-term charts show the pair bullish, above the main moving averages.

The pound has broken beyond the consolidation channel that has trapped the pair during the last six days, appreciating more than 1% during the day, to test prices at 135.00 area.

The daily chart shows the pair attempting to confirm the bullish reaction suggested by Wednesday’s hammer candle, jumping above the top of the last six days' trading range, at 133.70. So far, the GBP/JPY has been capped at 135.10 and is struggling to confirm above the 50-SMA, currently at 134.55.

GBP/JPY daily chart

The 4-hour chart shows the GBP/JPY above the main moving averages, testing April 16 high at 134.95 area. If the sterling manages to confirm above here, next targets might be April 9 high at 135.75 and March 11 high at 136.55. On the downside, the 200 SMA at 132.70 has ben offering support, with next potential support levels at 131.95 (April 21, 29 lows) and March 26 low at 130.50.

GBP/JPY 4-hour chart