GBP/JPY Price Analysis: Rallies sharply as bull’s eye 2021’s high at 158.22

• The British pound surged in the New York session up 1.03%.
• The GBP/JPY Tuesday’s upward move stalled near the R3 daily pivot.
• The GBP/JPY has an upward bias as GBP bull’s eye the 2021 year-high.

In the New York session, the British pound rallied against the Japanese yen, trading at 157.08 at the time of writing. A risk-on market mood spurred demand for risk-sensitive currencies like the GBP to the detriment of safe-haven peers like the JPY.

Since the overnight session, the cross-currency was seesawing around the daily pivot point at 155.42, then rallied sharply, breaking the R1, and R2 daily pivot levels, stalling at 157.43, 8-pips short of the R3 daily pivot at 157.51.

In the meantime, the daily moving averages (DMAs) reside below the 153.00 figure, with the 50-DMA being the closest to the spot. At the same time, the 100-DMA is about to cross over the 200-DMA, which would be another bullish signal that could send the GBP/JPY rallying towards the 2021 year-high at 158.22.

Upwards, the path of least resistance for the GBP/JPY as witnessed by the price action first resistance level would be 157.50. A breach of the latter would expose crucial supply zones, like 158.00, followed by the 2021 high at 158.22.

On the other hand, the cross-currency first support level would be the May 28 daily high, previous resistance-turned-support at 156.06, followed by June 23, 2021, daily high at 155.15, followed by the psychological 155.00

GBP/JPY Daily chart