GBP/JPY Price Analysis: Keeps pullback from monthly resistance above 154.00

• GBP/JPY remains sidelined after posting the week’s heaviest losses.
• Further losses envisioned on bearish MACD, failures to cross key hurdle.
• Yearly high can lure bulls above trend line resistance, 153.40-50 area becomes crucial support zone.

GBP/JPY sellers await fresh impulse while taking rounds to 154.30-35 during the initial Asian session on Friday. The cross-currency pair reversed from a one-month-old resistance line the previous day before bouncing off 153.83.

It should, however, be noted that the bearish MACD signals join the pullback from important resistance to direct sellers towards the 153.50-40 support confluence comprising 50-day SMA and April tops, as well as late May lows.

Although the pair’s downside past 153.40 becomes less expected, the GBP/JPY bears’ dominance below the said support will aim for late April tops near 152.40 and then to the 152.00 threshold ahead of highlighting an ascending support line from March 24, near 151.45.

Meanwhile, recovery moves may fade around the 155.00 round figure before the stated resistance line could tame the GBP/JPY bulls around 155.10.

If at all the quote rallies beyond 155.10, the monthly high, also the highest since early 2018, around 156.10, will be in the spotlight.

Overall, GBP/JPY consolidates the previous month’s gains above an important support confluence.

GBP/JPY daily chart

Trend: Pullback expected