Hits eight-year high on risk appetite improvement, bull’s eye 190.00

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• GBP/JPY uptrend appears to be overextended, with the next major target set at the 190.00 psychological level, a peak not seen since September 2008.
• A successful breach of 190.00 could open the path towards the September 2008 high of 198.34, potentially even the 200.00 mark.
• On the downside, initial support is today’s low of 186.04, followed by the Tenkan-Sen at 185.50, the Kijun-Sen at 184.52, and the Senkou-Span A at 185.01.

In the mid-North American session, GBP/JPY rallied and refreshed eight-year highs at around 188.28 on Tuesday, after economic data from the US sparked speculations the Federal Reserve wouldn’t tighten monetary policy any further. Investors see that as a green light to buy riskier assets, to the detriment of the safe-haven status of the Japanese Yen (JPY). The GBP/JPY trades at 188.08, up more than 2%

 Given the abovementioned fundamental intro, from a technical perspective, the GBP/JPY uptrend seems overextended, with buyers targeting the 190.00 mark, a level that hasn’t been reached since September 2008. A breach of the latter will immediately expose the September 2008 high at 198.34 ahead of testing 200.00.

On the other hand, the GBP/JPY first support is seen at today’s low of 186.04, which, once cleared, te pair could dive to the Tenkan-Sen level at 185.50, followed by the Kijun-Sen at 184.52. Once cleared, the next support would be the Senkou-Span A at 185.01.

GBP/JPY Price Analysis – Daily Chart

GBP/JPY Technical Levels