GBP/JPY Price Analysis: Buyers prepare an assault for a resistance trendline ahead of 165.00

The GBP/JPY daily chart tests a three-month-old resistance trendline at around 164.70-90.
The Relative Strength Index (RSI) and the Rate of Change (RoC) shifted bullish, indicating an upward trend for GBP/JPY.
GBP/JPY Price Analysis: Downside risks remain below 164.00.

Christian Borjon Valencia FXStreet

The GBP/JPY pair is gaining 0.53% on Thursday and is trading at 164.29 after hitting a daily low of 162.96. The pair's uptrend is attributed to the market's current risk-on sentiment and expectations that central banks will pause hiking rates after the recent banking turmoil in the US and Switzerland.

GBP/JPY Price action

The GBP/JPY daily chart suggests the pair is testing a three-month-old resistance trendline that passes at around 164.70-90, trading at 4-week highs. The Relative Strength Index (RSI) shifted bullish, suggesting the GBP/JPY outlook is upwards. The Rate of Change (RoC) jumped from a neutral stance after the GBP/JPY snapped three days of consecutive losses, erased on Thursday.

If the GBP/JPY continues its uptrend, the next resistance would be the February 27 high at 166.00. A breach of the latter will expose the December 19 daily high at 167.01, followed by the December 12 high at 169.27.

On the other hand, the GBP/JPY first support would be the psychological level at 164.00. Downside risks lie at the next support area at the 20-day Exponential Moving Average (EMA) at 161.87, ahead of testing the 50-day EMA at 161.18.

GBP/JPY Daily chart

GBP/JPY Technical levels

GBP/JPY

Overview
Today last price	164.33
Today Daily Change	0.73
Today Daily Change %	0.45
Today daily open	163.6

Trends
Daily SMA20	162.02
Daily SMA50	161.32
Daily SMA100	162.37
Daily SMA200	163.18

Levels
Previous Daily High	163.68
Previous Daily Low	161.36
Previous Weekly High	163.34
Previous Weekly Low	158.27
Previous Monthly High	166.01
Previous Monthly Low	156.73
Daily Fibonacci 38.2%	162.8
Daily Fibonacci 61.8%	162.25
Daily Pivot Point S1	162.07
Daily Pivot Point S2	160.55
Daily Pivot Point S3	159.75
Daily Pivot Point R1	164.4
Daily Pivot Point R2	165.21
Daily Pivot Point R3	166.73

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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