GBP/JPY PRICE ANALYSIS: HITS EIGHT-YEAR HIGH ON RISK APPETITE IMPROVEMENT, BULL'S EYE 190.00

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.