GBP/JPY climbs for third straight session, soars to vicinity of 133.00 handle

Upbeat sentiment around the British Pound has gained additional leg, with the GBP/JPY cross building on to its near-term recovery trend and climbing to nearly 3-week high level to move within striking distance of 133.00 handle. 

Today's up-move in the cross has been solely driven by strong GBP bid tone across the board. Moreover, a range bound trading action around the USD/JPY major has provided an additional leg of strength to the cross and extend its up-ward trajectory for third straight session.

How strong has the move been?

GBP/JPY spot is in overbought territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish. RSI is in neutral territory at 66.51, down from it’s last hourly close at 71.21, while ADX is trending above 30 at 33.49, down from 40.31 at the
last hourly close.

Looking to a daily chart, we see that RSI is neutral at 42.27. The 200 SMA is currently at 132.03, up from 131.27 at the last period close, and climbing on the hourly GBP/JPY chart. Moving with a downward trend, the exponential average closing price is 133.18.

What price levels and patterns have to be considered?

Immediate resistance above 133.00 round figure is pegged at 133.18 (Daily 20 SMA), 133.49 (Daily Classic R3) and 133.95 (Weekly Classic R2). Next support to the downside can be found at 132.60 (Daily Classic R1), 132.52 (Weekly Classic R1), 132.36 (Hourly 20 EMA), 132.34 (Yesterday's High) and 132.30 (Daily Open).

Looking at price patterns, we can see a Piercing Line 4-hour candlestick formation.