GBP/JPY Price Analysis: Bulls cheer Wednesday’s dragonfly Doji to aim for 150.00
|- GBP/JPY takes the bids to refresh intraday high, keeps bounce off four-month low.
- Further gains envisioned on oversold RSI, bullish candlestick pattern.
- Previous support line from late June tests recovery moves.
- Bears need to conquer 148.50 to retake controls.
GBP/JPY stays bid following the previous day’s U-turn from late March lows, up 0.15% intraday to refresh the day’s high with 149.95, during Wednesday’s Asian session.
The cross-currency pair’s rebound from a multi-day low on Tuesday portrayed a bullish candlestick formation, dragonfly Doji, on the daily chart. The recovery hints from daily candle also gain support from RSI recovery from the oversold area.
Hence, the latest up-move aims the support-turned-resistance line from June 21, surrounding 150.15. Though, the quote needs to cross the 150.00 threshold for that.
Additionally, the early July’s swing lows near 150.70 and 23.6% Fibonacci retracement of January-May upside, near 152.16 will tough resistances to watch during the GBP/JPY upside.
Alternatively, 38.2% Fibonacci retracement level near 149.70 offers immediate support during the quote’s pullback moves ahead of the key 148.45-50 region comprising lows marked since March.
To sum up, GBP/JPY corrective pullback is likely to extend but has miles to go before reversing the trend.
GBP/JPY: Daily chart
Trend: Further recovery expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.