GBP/JPY Higher

The GBP/JPY pair is trading at 149.00 as it has been on an uptrend since the beginning of July when it was below 145.00. The Sterling is seeing some inflows of capital as traders and investors saw an opportunity to buy at low levels due to economic uncertainties and political spats.

If the pair continues on its uptrend, we could see it reach the resistance level which falls at 150.00. This would mark the third touch of the downward trading channel started in early February this year.

Technically, the pair is still in a downturn and it will take some muscle to break through it. If we can get passed the resistance at 150.00, bulls might pour in new capital to fund the continuation of the appreciation of the Sterling against major currencies, JPY included.

Chart: GBP/JPY H4