GBP/JPY reaches 20-day SMA

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Resistances: 122.90; 123.35; 124.02
Supports: 121.93; 121.57; 120.90

Outlook
Yesterday's bearish reaction has ended, and now another bullish advance takes place, however, the GBP/JPY movement still remains within the falling wedge pattern. The GBP/JPY currency pair already managed to reach a 20-day SMA and now the price is slowly advancing further towards the monthly PP at 122.90, which might serve as the resistance level for the current rally. In case the price manages to break out of the falling wedge pattern, then resistance at 123.35 (55-day SMA) is very likely to bring some bearish momentum. In addition, RSI indicator remains neutral and will probably stay unchanged in the nearest future.

Traders' sentiment
SWFX market participants remain optimistic regarding the GBP/JPY, since 73% of traders hold long positions and only 27% of traders hold short positions on the currency couple. However, the distribution of orders has changed since yesterday, as almost 54% of traders ordered to sell and 46% of traders ordered to buy, therefore this might change present trend in the future.