GBPJPY is still consolidating inside its descending triangle on the daily time frame, but it appears that a breakout is bound to happen soon.

Price just bounced off the support again and might be due to test resistance at 151.50. The 200 SMA is holding as dynamic support since it lines up with the triangle bottom around 149.00.

The 100 SMA is above the 200 SMA to suggest that the triangle resistance is more likely to break than to hold, possibly sending GBPJPY up by the same height as the chart pattern or around 600 pips.

However, the gap between the indicators is narrowing to reflect slowing bullish pressure. Also, the 100 SMA is near the triangle top around 152.00 to add another upside barrier.

Stochastic and RSI are on middle ground to reflect consolidation, barely offering any directional clues at the moment.

There are no major reports from both the UK and Japan this week, so any big moves might be spurred by market sentiment.

The upcoming NFP release might have an impact on safe-haven demand later in the week, as an upside surprise would confirm tapering in November, possibly weighing on higher-yielding assets. In turn, lower-yielding ones like the dollar and Japanese yen might benefit from expectations of higher borrowing costs down the line.

Still, it’s worth noting that the yen has been on the back foot against most of its major counterparts, as the BOJ is nowhere close to tightening monetary policy. Japan is poised to take hits as crude oil prices keep rising, as this could limit export activity.

Meanwhile, the BOE might be forced to taper and tighten soon since inflation has been running pretty high. In fact, stagflation is becoming a concern in the UK, especially with rising energy prices. This could drive price pressures even higher amid a backdrop of weak growth.