GBP/JPY Price Analysis: 50-SMA redirects bulls towards monthly resistance line
- GBP/JPY restores upside momentum towards the key hurdle to the north.
- Receding bearish bias of MACD, sustained bounce off 50-SMA keeps buyers hopeful.
- 100-SMA adds to the downside filters, bulls need validation from monthly high for further advances.
GBP/JPY keeps bounce off one-week low as bulls attack the 152.00 threshold during Wednesday’s Asian session.
In doing so, the cross-currency pair portrays a bounce off 50-SMA rushing towards the key resistance line from early August that has been challenging bulls of late.
Even so, the pair’s sustained bounce off the short-term important moving average and the receding bearish bias of the MACD favor bulls targeting a break of the stated resistance line, near 152.20.
It should be noted, however, that the monthly high of 152.30 acts as an additional upside filter for the GBP/JPY buyers to tackle before riding towards the last month’s peak of 153.30.
On the contrary, 50-SMA near 151.65 and August 18 peak of 151.40 act as nearby support to watch before 151.10, comprising the 100-SMA, as well as the 151.00 round figure during the quote’s fresh weakness.
Meanwhile, a downside break of 151.00 will aim for the late August lows near 150.45 before directing the GBP/JPY bears towards the 150.00 psychological magnet and the previous month’s low near 149.18.
GBP/JPY: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
