Let’s Try That AgainGBPJPY is back in my sights again this week. I was last looking at it during the block of consolidation which formed ahead of 157.88, looking for a breakout. However, price ultimately resolved lower from that area. Following a rebound off the 153.39 level, we are now turning higher once again and this current block of micro-consolidation is suggesting fresh breakout opportunities.The retail market remains heavily short GBPJPY, suggesting scope for an upside move. Additionally, the uptick in hawkishness from the BOE has put GBP back in favour. With the UK moving past omicron now, optimism looks set to continue. The obvious risk here is JPY safe haven demand from tensions between Russia and Ukraine. However, the current situation might drag on for weeks if not months before resolving.So, in the meantime, I’m looking for a fresh break higher in the pair. Aggressive longs on a break of current 156.57 highs targeting 157.88 initially and 159.98 thereafter. More conservative entry is the break of 157.88 targeting 159.98. Invalidation below 155.17.Keep An Eye OnA raft of UK data over the later part of the week, along with BOE governor Bailey speaking, will be the main focus. Traders will be closely watching UK data to see how economy performed over the recent omicron period. If we see any upside surprises, this should keep the focus firmly on BOE tightening, supporting GBP near term.
Source: Tickmill
