GBP/JPY Technical Analysis: Gains capped at 147.00 despite Brexit optimism

GBP/JPY's struggle for a convincing break above 147.00 continues in Asia despite Brexit optimism.

British MPs passed the Cooper Bill yesterday, removing another barrier to "no-deal Brexit". Pound picked up a bid on improving prospects of soft Brexit. So far, however, the GBP/JPY cross has not been able to cross 147.00 - a level which has persistently capped upside in the last 20 hours.

That said, a breakout could happen soon as the Bank of Japan's governor Kuroda was out on the wires soon before press time reiterating the need to persist with policy easing.

A convincing move above 147.00, if any, would only reinforce the bullish view put forward by the long-tailed doji candle created on the 4-hour chart and open the doors to levels above 148.00. As of writing, the pair is trading at 146.86, having clocked a high of 146.91 earlier today. 

4-hour chart

Trend: Bullish above 147.00