The GBPJPY cross surged to five-month high (also new 2023 peak), advancing 1.6% until early US session on Friday, as yen was sold across the board after the Bank of Japan kept firm dovish stance.
The biggest daily gains since Jan 4 surged through Fibo barrier at 168.16 (76.4% retracement of 172.11/155.35) and broke former tops of Nov 23 / Dec 13 at 169.00/169.27 respectively, pressuring psychological 170 level.
This marks the last obstacle en-route to key resistance at 172.11 (peak of Oct 31, the highest Feb 2016).
Larger bulls are likely to take a breather in coming sessions as 14-d momentum and RSI are at the border of overbought zone, suggesting that traders may collect some profits from three-day rally which accelerated on Friday.
Pullback should offer better buying opportunities, with extended dips expected to find support above 168.00 zone (broken Fibo 76.4% level at / former tops of Apr 19/25) to keep bulls in play.
Res: 170.00; 170.95; 172.11; 174.98.
Sup: 137.00; 168.36; 168.00; 167.18.
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