GBP/JPY Price Analysis: Golden cross In the 4-hour chart opens the way towards 156.00

• On Monday, the GBP/JPY advanced some 0.68% amid a risk-on market mood.
• The British pound gained some 140 pips during the day.
• GBP/JPY Price Forecast. A golden cross in the 4-hour chart opened the door for further gains.

The British pound extends its rally against the safe-haven Japanese yen, trading at 154.43 during the day at the time of writing. Despite having thin liquidity conditions, the market sentiment is upbeat, as shown by US equities ending green. 

That said, market participants did not account for another 1,000 flights canceled in the US on Monday, added to the 3,000 during the Christmas weekend, totaling around 4,000. Staff shortages, weather-related disruptions, and the fast-spreading Omicron Covid-19 strain disrupt flights during the year. 

“As long as the Omicron variant continues to infect people who are vaccinated and quarantine restrictions remain in place, air travel is expected to be hit by staffing shortages,” per Reuters cited sources.

In the meantime, durIng the overnight session, the GBP/JPY rallied 140 pips, from 153.05 to 154.45. The upward move began right at the confluence of the 50-hour simple moving average (SMA) and the psychological 153.00 figure, spurring a rally amir appetite for riskier assets. That, in the end, propel risk-sensitive currencies like the GBP higher against safe-haven ones.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY 4-hour chart depicts a golden-cross formation, meaning that the 50-simple moving average (SMA) crossed over the 200-SMA, triggering a signal of buying the GBP. 

That said, the first resistance would be the 61.8% Fibonacci retracement at 154.68. A break above that level would expose the November 4 daily high at 156.24, followed by the October 29 daily high at 157.09

On the other hand, the first support would be the 50% Fibonacci retracement at 153.59. A decisive breach of the latter would expose crucial support levels, like the 50-day moving average(DMA) at 153.00, followed by the confluence of the 100 and the 200-DMAs at 152.49.