GBP/JPY: Visits the 200 day EMA

The 200 day exponential moving average or EMA usually acts as a good support or resistance zone. On the daily chart of the GBP/JPY we can see that the pair has reached its 200 day EMA, blue line, around the 141.19 level. The rally has been really steep; therefore, from the current level the pair may bounce to the downside and probably correct to the 139.00 level. A longer correction could take the pair to the 135.00 level. The bullish trend is still in place and that is why we could see a breakout of the 200 day EMA, which could take the pair to the 150.00 zone.