GBP/JPY Price Analysis: Extends bounce off 10-DMA towards three-month-old resistance

GBP/JPY takes the bids to refresh weekly, up for the second consecutive day.
Overbought RSI, looming bear cross may again challenge buyers.
Upside break of needs validation from monthly high, 2021 peak.

Anil Panchal FXStreet

GBP/JPY refreshes weekly top to 157.41 while stretching the previous day’s rebound from 10-DMA to early Wednesday. In doing so, the cross-currency pair eyes a downward sloping resistance line from October 20.

Although bullish MACD signals hint at the pair’s further advances, overbought RSI and previous failures to cross the key hurdle around 157.70 teases bears. Furthermore, a looming bearish cross between the 50-DMA and 100-DMA also challenges the quote’s further advances.

Even if the quote rises past 157.70, it needs to cross the monthly high of 157.76 and 2021 top surrounding 158.22 to convince the GBP/JPY bulls.

Following that, the 160.00 threshold and May 2016 peak of 163.90 should lure the pair buyers.

Alternatively, pullback moves remain elusive beyond the 10-DMA level of 156.57, a break of which will direct GBP/JPY sellers towards the weekly bottom of 155.95.

However, any further downside will be challenged by the mid-November’s high near 154.75 and a confluence of the 100-DMA and 50-DMA close to 153.05.

GBP/JPY: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	157.38
Today Daily Change	0.23
Today Daily Change %	0.15%
Today daily open	157.15

Trends
Daily SMA20	154.31
Daily SMA50	153.03
Daily SMA100	153
Daily SMA200	152.82

Levels
Previous Daily High	157.32
Previous Daily Low	156.15
Previous Weekly High	157.77
Previous Weekly Low	154.89
Previous Monthly High	156.02
Previous Monthly Low	148.98
Daily Fibonacci 38.2%	156.87
Daily Fibonacci 61.8%	156.6
Daily Pivot Point S1	156.43
Daily Pivot Point S2	155.71
Daily Pivot Point S3	155.27
Daily Pivot Point R1	157.59
Daily Pivot Point R2	158.04
Daily Pivot Point R3	158.76

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.

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