GBP/JPY Price Analysis: Buyers defend 156.00 critical support

GBP/JPY accumulates gains on Monday in the early Asian trading hours.
The cross-currency pair took a breather near 156.00 following a two days sell-off.
The momentum oscillator holds onto the overbought zone, throwing caution for aggressive bids.

Rekha Chauhan Independent Analyst

The GBP/JPY cross-currency pair remains upbeat on the fresh trading week. The pair opened lower but managed to catch the upside momentum. At the time of writing, GBP/JPY is trading at 156.47, up 0.21% for the day.

GBP/JPY daily chart

On the daily chart, the GBP/JPY cross currency pair seems exhausted near a fresh six-year high made on Wednesday. The double top near 158.22 prompts bears to take some action, which resulted in two days sell-off of more than 300-pips.

The price sustained the 156.00 psychological level and is on the way to climb back to the 157.00 horizontal resistance level. A successful daily close above 157.00 would again prompt the bulls to test the multi-year highs above 158.20.

Alternatively, the Moving Average Convergence and Divergence (MACD) trades in the overbought zone. Any downtick in the MACD along with the break of 156.00 would bring selling opportunities in the pair. In that case,the first downside target appears at the low of October, 15 at 155.42, followed by the 155.00 horizontal support level.

Next, the market participant would aim at the 154.00 horizontal support zone.

GBP/JPY additional levels

GBP/JPY

Overview
Today last price	156.44
Today Daily Change	0.30
Today Daily Change %	0.19
Today daily open	156.14

Trends
Daily SMA20	153.72
Daily SMA50	152.15
Daily SMA100	152.59
Daily SMA200	151.2

Levels
Previous Daily High	157.66
Previous Daily Low	155.93
Previous Weekly High	158.22
Previous Weekly Low	155.93
Previous Monthly High	152.85
Previous Monthly Low	148.96
Daily Fibonacci 38.2%	156.59
Daily Fibonacci 61.8%	157
Daily Pivot Point S1	155.49
Daily Pivot Point S2	154.84
Daily Pivot Point S3	153.76
Daily Pivot Point R1	157.23
Daily Pivot Point R2	158.31
Daily Pivot Point R3	158.96

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.

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