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GBP/JPY - Buying on a Pullback after a Range Breakout

GBP/JPY is presenting a trade trade up after breaking out of consolidation in the direction of the prevailing uptrend:

GBP/JPY 4H Chart


(click to enlarge)

Other then the fact the prevailing trend is bullish, the technical clues in the 4H chart are all bullish.
1) Price is above the 200-, 100-, and 50-period SMAs.
2) The SMAs are sloping up and are in bullish alignment.
3) The RSI has been tagging above 70 and holding above 40, reflecting persistent bullish momentum.

Now, if price comes back to the middle of the broken range around 183, we should be expecting buyers. Also note a rising trendline coming up from the October low around 168. If price can hold above 183, forgiving some brief break below it, GBP/JPY is poised to test the 186.00 handle again, with risk of breaking higher. The width of the broken range is about 345 pips. A 345-pip projection above 184.35 broken resistance puts the 187.50 level in sight.

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