GBP/JPY Price Analysis: Keeps 100-DMA breakout near weekly top
|- GBP/JPY picks up bids during a four-day uptrend around the week’s high.
- 100-DMA break pushes buyers toward a bumpy road unless crossing downward sloping trend line from late May.
- 13-day-old rising trend line adds to the downside filters.
GBP/JPY bulls attack 153.00, bouncing off intraday low, amid Friday’s Asian session. In doing so, the cross-currency pair rises for the fourth consecutive day while staying near the weekly top.
While the quote’s ability to cross 100-DMA propelled it to the week’s high, a downswing in the Momentum line and key hurdles on the way to the north challenges the pair traders.
Among them, a convergence of 50-DMA and a monthly resistance line, around 153.20–30, restricts immediate upside, a break of which will direct the quote towards a multi-day-old falling trend line, near 153.55.
If at all, the GBP/JPY bulls manage to cross 153.55, the last month’s top around 154.10 should return to the charts.
On the flip side, 100-DMA and an upward sloping trend line from July 20, respectively around 152.60 and 152.00, limit the quote’s short-term declines.
Also testing GBP/JPY sellers is the monthly low near 151.15 and early July’s low of 150.67.
Overall, GBP/JPY is likely to extend the recovery moves from Tuesday but a bumpy road will test the bullish commitments.
GBP/JPY: Daily chart
Trend: Further upside 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.