#GBPJPY @ 174.211 sees a bullish continuation, testing the year-to-date high amid a weaker JPY and BoE tightening expectations. (Pivot Orderbook analysis)

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• GBP/JPY sees a bullish continuation, testing the year-to-date high amid a weaker JPY and BoE tightening expectations.
• A move past the YTD high could propel the pair toward the 175.00 supply zone and possibly a seven-year high.
• Potential correction below the Tenkan-Sen line could hit support at 172.66 and drop towards the Kijun-Sen line at 171.26.

The pair currently trades last at 174.211.

The previous day high was 173.78 while the previous day low was 172.68. The daily 38.2% Fib levels comes at 173.1, expected to provide support. Similarly, the daily 61.8% fib level is at 173.36, expected to provide support.

GBP/JPY prints minuscule gains, with buyers eyeing a test of the year-to-date (YTD) high at 174.68 as the Asian session begins. On Wednesday, the GBP/JPY pair finished with gains of 0.42%, bolstered by a weaker Japanese Yen (JPY). Meanwhile, expectations for further tightening by the Bank of England (BoE) underpinned the Pound Sterling (GBP). Hence, the GBP/JPY exchanges hand at 174.28.

GBP/JPY is set for a bullish continuation, as shown by the daily time frame. As the pair closes into the YTD high, price action turns choppy, which could open the door for a reversal, as the Tenkan-Sen line, at 173.59, is the closest to the current price action.

If GBP/JPY extends its gains past the YTD high, the next supply zone would be 175.00. A rally above that level could pave the way for the GBP/JPY to hit seven-year new highs and test the 2016 yearly high at 177.37.

Conversely, a fall below the Tenkan-Sen line and the GBP/JPY might correct lower. First, support would be found at the weekly low of 172.66. A breach of the latter will expose 2022 yearly high shifted support at 172.13, ahead of falling toward the 172.00 figure. Downside risks lie beneath that level, with the Kijun-Sen line at 171.26.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 174.33 at the time of writing. Pair opened at 173.48 and is trading with a change of 0.49 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 172.1, 50 SMA 168.99, 100 SMA @ 165.11 and 200 SMA @ 164.59.

The previous day high was 173.78 while the previous day low was 172.68. The daily 38.2% Fib levels comes at 173.1, expected to provide support. Similarly, the daily 61.8% fib level is at 173.36, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 172.85, 172.21, 171.75
• Pivot resistance is noted at 173.94, 174.41, 175.04

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