GBP/JPY Price Analysis: Off seven-week low to regain 159.00 but not out of the woods

• GBP/JPY pares recent losses around the key support area.
• Bearish MACD signals, downbeat RSI test buyers below three-week-old resistance.

GBP/JPY rebounds from the lowest levels since late March, picking up bids near 159.05 during Thursday’s Asian session, as bears lose control near the strong support zone.

The cross-currency pair’s previous weakness could be linked to the clear downside break of the 50-DMA, as well as bearish MACD signals and an absence of oversold RSI.

However, a horizontal area from October 2021 around 157.75-158.25, also comprising the 100-DMA, appears a tough nut to crack for the pair bears.

Should the GBP/JPY prices fail to recover from 157.75, a gradual south-run towards late November 2021 top surrounding 154.75 can’t be ruled out. Though, a five-month-long ascending support line near 152.55 will challenge the bears afterward.

Alternatively, recovery moves need to cross the 50-DMA level of 160.30 to challenge a downward sloping resistance line from April 20, close to 161.25 by the press time.

In a case where GBP/JPY rises past 161.25, highs marked during March and April, near 164.65 and 168.45 respectively, will be in focus.

GBP/JPY: Daily chart

Trend: Further recovery expected