The Japanese yen was weak during this week's bout of risk appetite so far. The GBP/JPY broke above a declining wedge to start the week, and is following through during the European session after a pause in the 11/29 Asian session. The RSI also pushed above 60 and is staying above and nearing 70, reflecting a loss of bearish momentum.
As we wind up for the US session, the market is at the 121.70 pivot. A break of this opens up the next resistance cluster near 122.40. Here, we have the 38.2% retracement of the 127.30-119.35 bear run. The 200 period simple moving average in the 4H chart is also here, reinforced by a brief consolidation period seen 11/14-11/15.
A break above opens up 50% retracement near 123.30. If the market finds support above 122.30, and pushes above 124.30, we have further confirmation of the bullish outlook, first toward 125.60 and then 127.30 in the short-term.