GBP/JPY 4H Chart: Channel Down

After weeks of losses that sent the Sterling to 164 against the Yen, the pair's bulls finally see some light at the end of the tunnel. GBP/JPY is now even testing the upper boundary of the bearish channel. In case it is breached, the Pound will be in a good position to extend gains much higher, especially considering that SWFX market traders support the upward movement in 57% of all cases at the moment. The outlook, however, can be dampened by a dense cluster of resistances above the red trend-line. The first obstacle to meet will be 100-period SMA and monthly S2 at 171, followed by supply levels near 174 and 176.70. Failure anywhere there will put at risk a recovery of the Pound vs Yen.