GBP/JPY Price Analysis: Bounces off 162.60 support confluence ahead of UK jobs report
|- GBP/JPY takes the bids to refresh intraday high while snapping three-day downtrend.
- Convergence of the 50-DMA, 20-DMA and monthly support line challenge immediate downside.
- Bulls need validation from March’s high, UK employment numbers.
GBP/JPY refreshes intraday high around 164.00 as traders await the UK’s employment data during early Tuesday morning in Europe.
The pair’s latest rebound could be linked to the failures to conquer the 162.60-50 support confluence including the 50-DMA, the 20-DMA and a one-month-old ascending trend line.
Also keeping the GBP/JPY sellers hopeful are the bullish MACD signals, as well as softer US Treasury yields. It’s worth noting that he hopes downbeat UK data limits the cross-currency pair’s recovery moves of late.
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Additionally, March’s high of 164.65 offers an extra filter to the north before giving control to the GBP/JPY bulls, a break of which can direct the prices towards the double tops surrounding 168.45-75.
Meanwhile, pullback moves remain elusive until staying beyond 162.50, a break of which could quickly break the 160.00 threshold while directing the GBP/JPY sellers towards April’s low near 159.65.
However, an upward sloping support line from early March, near 157.80-75 by the press time, could challenge the pair sellers past 159.65.
GBP/JPY: Daily chart
Trend: Further recovery expected
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