• GBP/JPY may find its initial resistance at the psychological level of 200.00.
• The 14-day Relative Strength Index stays above 50, reinforcing the bullish bias.
• The immediate support lies at the nine-day EMA of 199.82.

GBP/JPY extends its gains for the third consecutive day, trading around 199.80 during the early European hours on Wednesday. A look at the daily chart shows the currency cross is remaining within an ascending channel pattern, indicating the short-term market price momentum is stronger and confirming bullish confirmation.

Additionally, the 14-day Relative Strength Index (RSI), a key momentum gauge, is positioned slightly above the 50 mark, strengthening the bullish bias. The EUR/JPY cross has just moved above the nine-day Exponential Moving Average (EMA), offering bullish confirmation.

The GBP/JPY cross may find its primary resistance at the psychological level of 200.00, followed by the 14-month high of 201.27, which was reached on September 18. A break above this level would support the market sentiment and prompt the currency cross to explore the region around the ascending channel’s upper boundary at 203.70.

On the downside, the GBP/JPY cross is testing its immediate support at the nine-day EMA of 199.82, followed by the lower boundary of the ascending channel around 199.50. A break below the channel would weaken the bullish bias and put downward pressure on the GBP/JPY cross to test the 50-day EMA at 198.85.

GBP/JPY: Daily Chart