GBP/JPY Price Analysis: Stays on the way to 156.00 despite recent pullback
- GBP/JPY retreats from two-month high, stays mildly bid though.
- Clear upside break of previous resistance, firmer RSI and sustained trading beyond 50-DMA favor bulls.
- Seven-month-old horizontal area lures buyers, mid-November high also acts as nearby support.
GBP/JPY bulls take a breather around early November tops, up 0.06% intraday near 155.15 heading into Thursday’s London open.
The cross-currency pair refreshed the multi-day top earlier in Asia while cheering the previous day’s successful break of ascending trend line from December 07. Despite the recent pullback, the quote remains beyond the stated resistance line, now support around 154.85.
Not only the sustained trend line breakout but successful trading above 50-DMA level surrounding 153.00 also keeps GBP/JPY buyers hopeful to aim for the horizontal area comprising multiple tops marked since May, around 156.00.
Following that, 156.85 and 157.30 may entertain the pair buyers before directing them to the yearly peak of 158.22.
Alternatively, a downside break of the resistance-turned-support line near 154.85 will direct the GBP/JPY prices towards November 17 swing high close to 154.75 and then to the 50-DMA near 153.00.
It should be noted that the pair bears will gain momentum on the break of 153.00, which in turn could direct the south-run towards the 150.00 threshold before highlighting the monthly low near 149.00.
GBP/JPY: Daily chart
Trend: Further upside expected