GBP/JPY Price Analysis: Mildly bid above 166.00, 13-day-old hurdle eyed
|- GBP/JPY picks up bids to portray three-day uptrend.
- Sustained break of weekly resistance line directs buyers towards a fortnight-old hurdle.
- Convergence of the key SMAs, resistance-turned-support and an immediate upward sloping trend line highlight 165.40 as the key support.
GBP/JPY refreshes intraday high near 166.40 during the third positive daily performance amid Tuesday’s Asian session.
In doing so, the cross-currency pair justifies the previous day’s upside break of a one-week-old resistance line amid sluggish MACD signals.
With this, the quote aims for a downward sloping trend line resistance from June 09, around 167.50.
However, the GBP/JPY pair’s upside past 167.50 will be challenged by the previous weekly top and the monthly high, respectively surrounding 167.90 and 168.75, before directing the advances toward the 170.00 psychological magnet.
Alternatively, pullback moves remain elusive until stay beyond the 165.40 support confluence, including the 50-SMA, 100-SMA and an ascending support line from June 23, not to forget the one-week-old previous resistance line.
In a case where the GBP/JPY prices decline below 165.40, the odds of witnessing a slump towards the 200-SMA level near 162.90 can’t be ruled out.
Overall, GBP/JPY has limited upside room but the bears will have a tough time until breaking 165.40.
GBP/JPY: Four-hour 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.