GBP/JPY bulls reaching 150 handle as trade war concerns abate

• The GBP/JPY is trying to close above the 150 handle.
• The yen is weak against most currencies as trade war concerns are abating. 

The GBP/JPY is trading at around 150.19 virtually unchanged on Thursday as the Japanese yen is decreasing in value across the board, amid limited demand for safe-haven assets. The trade war issues between the United States and China are abating as both parties agreed that diplomatic discussions would be more beneficial than an escalating trade war.  
 
The wind of optimism is seen with equities around the globe well-supported, gold is under pressure below $1,330 and the US Dollar Index is now trading higher near the $90.50 mark. The yen, on the other hand, is weaker against most of its rivals.

Later in the day, Japan will release low-tier data with its Overall Household Spending in March by the Ministry of Internal Affairs and Communications along with Japanese foreign-exchange Reserves in March, both scheduled at 23:30 and 23:50 GMT respectively.

Earlier in the day in the UK, a worst-than-expected Markit Services PMI for March didn’t significantly affect the GBP/JPY cross.

GBP/JPY weekly chart

The GBP/JPY is in a tight bull channel on the weekly time frame. The price action is being supported by the 50-period simple moving average. The bulls are trying to conclusively break above the 150 handle. The RSI is at 53 and both the RSI and MACD indicators are constructive to the upside. 

GBP/JPY daily chart

The bulls are facing resistance at 150.60 as the 100-period simple moving average is capping the advance. A break above the 150.60 level can lead to a test of the 154 swing high and 156.61 cyclical high.

GBP/JPY 4-hour chart

Supports are seen at 148.80 and 148.38 swing lows. The market is now trading above its 50, 100 and 200-period simple moving averages suggesting a bullish momentum after seeing  oversold conditions in the RSI in late February and early March of this year. Immediate resistances are seen at 150-60 and 150.93 swing highs.