GBP/JPY Price Analysis: All set to challenge 2022 peak around 158.00
- GBP/JPY remains on the front foot for the third consecutive day around five-week top.
- Clear upside break of five-month-old resistance line, bullish MACD favor buyers.
- Short-term bull cross adds to the upside bias, 10-DMA restricts immediate downside.
GBP/JPY holds onto the week-start gains around 157.50, the highest levels since early February, as bulls stay firmer beyond the key hurdle during Tuesday’s Asian session.
The cross-currency pair rallied past a downward sloping resistance line from October 2021 the previous day, now support around 157.30.
The trend line breakout takes clues from the bullish MACD signals and the 10-DMA’s piercing off the 21-DMA, known as a bull cross, to suggest the quote’s further upside.
That said, February’s high near 158.10 gains the immediate attention of the GBP/JPY bulls ahead of the October 2021 peak of 158.22.
In a case where the pair rallies past 158.22, June 2016 high near 160.15 will gain the market’s attention.
Alternatively, pullback moves remain less worrisome until staying beyond the resistance-turned-support line near 157.30.
Following that, the 10-DMA and the 21-DMA levels, surrounding 155.00 and 154.35 respectively, will act as the last defenses for the GBP/JPY bulls.
GBP/JPY: Daily 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.
