GBP/JPY Price Analysis: On the rise after weekly inverted hammer candle

• GBP/JPY trades near 136.22 versus 135.75 in early Asia. 
• The weekly candle favors stronger gains toward an SMA hurdle.  

GBP/JPY is currently trading near 136.22, representing a 0.28% gain on the day, having carved out an inverted hammer last week. 

The candlestick pattern indicates that the pullback from the October high of 137.85 has ended and the broader recovery from the September low of 133.04 has resumed. 

Supporting the bullish case is the MACD histogram’s crossover above zero. Also, the 14-day relative strength index (RSI) has moved into bullish territory above 50.

The pair could challenge the 50-week simple moving average (SMA) at 137.11. On the downside, the higher low of 134.40 created on Oct. 30 is the level to beat for the bears. 

Weekly charts

Trend: Bullish

Technical levels