Chart-led recovery? GBP/JPY peeps above 151.00

GBP/JPY snaps four-day losing streak.
Prints session high above 151.00, bullish RSI divergence sighed on 1H chart.
The investors have pared back BoE May 10 rate hike expectations.

Omkar Godbole FXStreet Contributor

Currently, the GBP/JPY is trading at 151.05, having clocked a session high of 151.12 a few minutes ago.

The currency pair has added 30 odd pips seemingly due to the bullish price relative strength index (RSI) divergence seen on the hourly chart.

It is worth noting that GBP/USD is flat-lined around 1.40. So, the uptick in the GBP/JPY could be associated with the rising treasury yield-led gains in the USD/JPY pair.

Moreover, the GBP side of the story has weakened as last week's dismal UK CPI, wage growth and UK retail sales release forced the markets to scale back expectations of a Bank of England (BOE) rate hike on May 10.

GBP/JPY Technical Levels

A break above 151.17 (April 12 low) would expose the descending 5-day moving average (MA) lined up at 151.60 and 152.02 (10-day MA). On the downside, breach of support at 150.92 (100-day MA) could yield a re-test of 150.72 (session low) and 150.68 (Friday's low).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Shrinking
1H	Strongly Bearish	Neutral	Low
4H	Bearish	Neutral	Expanding
1D	Bearish	Neutral	Expanding
1W	Bullish	Neutral	High
Updated Apr 23, 01:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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