Technical analysis for GBP/JPY, the pair closed the week with a low-test candle on the weekly chart, bouncing from support and 0.500 FIB retracement. The first target for this bounce is the 0.382 FIB retracement on the daily chart at 154.95. The second target is the 0.500 FIB retracement on the daily chart at 155.35. The third target is the 0.618 FIB retracement on the daily chart at 155.90-156.00. If the GBP/JPY break above the 0.618 FIB retracement at 156.00, that will open the door for a bullish run toward the previous high and the 2.272 FIB extension on the daily chart around 157.90.
On the other hand, if the GBP/JPY pair break below last week’s low and the 0.618 FIB retracement on the weekly chart at 152.40. That will open the door for a bearish run toward the support zone between 150-149.00.
Looking at the bigger picture, on the weekly chart, the GBP/JPY is within its third bullish wave on the weekly chart. The GBP/JPY hit the second target of that wave, the 1.618 FIB extension at 156.80-157.00. If the GBP/JPY starts trading and holding above 157.00, that will open the door for a bullish run toward the 2.272 FIB extension of the weekly chart around 167.00.