GBP/JPY Technical Analysis: Confirms a near-term bullish breakout ahead of UK CPI

   •  The cross finally broke out of its four-day-old consolidative trading range and jumped to the 143.00 neighbourhood, or over one-week tops in the last hour.

   •  The up-move also confirmed a bullish break through a descending trend-channel, held over the past 2-1/2 weeks or so, and paves the way for additional gains.

GBP/JPY 1-hourly chart

   •  Looking at the broader picture, the descending trend-channel also constituted towards the formation of a bullish continuation flag chart pattern on the daily chart.

   •  Bullish oscillators on 4-hourly/daily charts add credence to the near-term constructive set-up, albeit overbought conditions on the 1-hourly chart capped gains.

Daily chart

   •  Traders now look to the release of latest UK consumer inflation figures before positioning for an extension of the pair’s recent up-move from over 2-week lows.