GBP/JPY Price Analysis: Advances confidently towards 160.50 hurdle
- GBP/JPY stays mildly bid during three-day uptrend, stays inside fortnight-old symmetrical triangle.
- Steady RSI hints at further recovery towards 100-SMA, 38.2% Fibonacci retracement.
- Monthly resistance line, 200-SMA act as extra filters to the north.
GBP/JPY buyers attack the 160.00 threshold inside a two-week-long symmetrical triangle heading into Monday’s European session.
In doing so, the cross-currency pair approaches a convergence of the 100-SMA and 38.2% Fibonacci retracement of April 20 to May 12 downside, near 160.50, amid a steady RSI (14) line.
It should, however, be noted that the GBP/JPY upside past 160.50 appears difficult as a downward sloping trend line from late April and the 200-SMA, respectively near 161.20 and 162.30 in that order, will challenge the bulls.
Also acting as an upside filter is the aforementioned triangle’s resistance line surrounding 161.60.
Meanwhile, pullback moves may target the stated triangle’s support line, at 158.90 by the press time, before revisiting the latest swing low of 157.88.
If at all the GBP/JPY bears keep reins past 157.88, the monthly low around 155.90 should gain the market’s attention before convincing the bears.
GBP/JPY: Four-hour chart
Trend: Further recovery 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.
