GBP/JPY Price Analysis: Bulls likely to extend gains beyond 153.00
- GBP/JPY rallies hard in the Asian session.
- Bulls are in control, with eyes set on the 153.00 mark.
- MACD shows risks remain to the upside for the cross.
The GBP/JPY is extending the previous day’s gain in the Asian session. The cross peaked at 152.70 after opening lower at 151.98.
At the time of writing, GBP/JPY is trading at 152.64, up 0.64% on the day.
GBPJPY daily chart
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On the daily chart, the GBP/JPY cross has been steadily moving higher following Friday’s gain, having refreshed daily highs at 152.71. The cross is rising along the extended ascending trendline from the lows of 149.06, testing it again at 151.26.
On moving higher, the first hurdle would appear to be 153.00 the horizontal resistance zone, followed by monthly highs of April in the vicinity of 153.45 (April 6).
The Moving Average Convergence Divergence (MACD) indicator reads well above the midline, the upward momentum could intensify towards February 2018 highs at 156.61, following an uptick in the momentum oscillator.
Alternatively, on the downside, prices could face the 152.00 horizontally placed interim support. A fall below the mentioned level would mark the breach of the upward sloping line, thus, indicating the reversal in the prevailing trend. This technical pattern would then target Friday’s low at 151.26 and 151.00 (May 4 lows).
GBP/JPY Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
