GBP/JPY Price Analysis: Dragonfly Doji keeps buyers hopeful above 151.00
- GBP/JPY snaps five-day downtrend, bounces off two-month low.
- Bullish candlestick, MACD signals favor buyers to cross short-term hurdle.
- 100-SMA, fortnight-long resistance line challenge further upside, sellers will return below 151.00.
GBP/JPY extends rebound from October lows, tested the previous day, while picking up the bids to 151.35 during early European morning on Wednesday.
The cross-currency pair cheers a bullish candlestick formation at the multi-day low to consolidate the heaviest monthly fall since September 2020. Adding to the bullish bias is the quote’s latest upside break of a weekly falling trend line and upbeat MACD conditions.
That said, GBP/JPY buyers currently aim for multiple hurdles around 151.80 before challenging the 152.00 threshold.
However, the pair’s further advances will be challenged by 100-SMA and a descending trend line from November 17, respectively around 153.00 and 153.65.
Alternatively, the resistance-turned-support line around 151.10 precedes the 151.00 round figure to restrict short-term GBP/JPY declines.
Adding to the downside filters is the 150.45 level and the 150.00 psychological magnet before the quote challenges October’s trough near 149.25.
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.
