GBP/JPY Price Analysis: Could this powerful move lead to a reversal in the pairs fortunes?

• GBP/JPY has moved over 1% higher on Tuesday.
• If the daily candle closes near current levels it would engulf the last four sessions price action.

GBP/JPY daily chart

GBP/JPY has had a powerful 150+ pip move higher on Tuesday as the risk sentiment in the market turns positive. GBP has recently cemented its status as a risk currency as it seems to ebb and flow with equities. Obviously the Japanese yen is a safe-haven so this seems to be the ultimate pair to measure the sentiment in the macro markets.

Looking closer a the chart, the blue horizontal line just below 136.00 is going to be a big target for the bulls. On the left-hand side you can see the market has rejected the area on a few occasions in the past. In terms of the price waves, there has been a higher low created but the wave high is pretty far away at 139.74.

The Relative Strength Index is slightly under the 50 area but is tilting high as if it will break the level. The MACD histogram is in the red but the histogram bars are getting smaller. Lastly, the signal lines are just above to break above the mid-line again and if it does it could be seen as a bullish sign.

Additional levels