GBP/JPY Price Analysis: Jumps to fresh multi-month tops, ascending triangle breakout in play

• GBP/JPY gained strong positive traction through the early European session on Tuesday.
• The momentum pushed the cross beyond ascending triangle resistance near 141.30 area.
• The set-up favours bullish traders and supports prospects for a move to the 142.00 mark.

The GBP/JPY cross edged higher through the early European session and shot to its highest level since early September, around mid-141.00s. A sustained move beyond the 141.30 horizontal resistance might be seen as a fresh trigger for bullish traders.

The mentioned barrier, along with an upward sloping trend-line, constituted the formation of an ascending triangle on short-term charts. This is a bullish continuation pattern and supports prospects for additional gains.

Meanwhile, technical indicators on 4-hourly/daily charts maintained their bullish bias and are still far from being in the overbought territory. This further adds credence to the constructive set-up and favours bullish traders.

Some follow-through buying beyond the 141.40 region further reaffirms the bullish outlook and should now push the GBP/JPY cross towards the 142.00 mark. Bulls might then aim to test September 2020 swing highs, around the 142.30-35 region.

On the flip side, the 141.00-140.90 region now seems to protect the immediate downside. Any subsequent fall is more likely to attract some dip-buying and remain limited near the triangle support, around the 140.65 region.

The latter coincides with 200-hour SMA and should act as a key pivotal point for short-term traders. A convincing break below will negate the positive outlook and prompt some aggressive technical selling around the GBP/JPY cross.

GBP/JPY 1-hourly chart

Technical levels to watch