GBP/JPY Price Analysis: Faces rejection at critical hurdle amid overbought conditions

GBP/JPY stalls the advance, as 151.50 beckons.
Key hurdle on the 4H chart caps the rally in the spot.
Overbought RSI conditions also triggered the retreat.

Dhwani Mehta FXStreet

GBP/JPY is retreating from two-week highs of 152.03, looking to test the 151.50 support area amid a sharp pullback in GBP/USD from above the 1.4000 mark.

The downside in the cross remains by the solid gains in the USD/JPY, as the major continues to benefit from rising US Treasury yields.

Technically, GBP/JPY turned south after facing stiff resistance near the critical horizontal (orange) trendline at 152.08.

The overbought Relative Strength Index (RSI) conditions on the four-hour chart justified the retracement from higher levels.

Although a bull cross seen on the said time frame earlier on, suggests that the uptrend could resume after the pullback. The 21-simple moving average (SMA) pierced through the 50-SMA from below, which represented a bullish crossover.

To the upside, the bulls look to retest the abovementioned powerful hurdle, above which doors would open towards 152.50 levels.

On the flip side, the bears target the 100-SMA at 151.27 if the retreat extends. Further south, the 200-SMA at 151.08 could emerge as strong support.

GBP/JPY four-hour chart

GBP/JPY additional levels to watch

GBP/JPY

Overview
Today last price	151.65
Today Daily Change	0.36
Today Daily Change %	0.24
Today daily open	151.32

Trends
Daily SMA20	150.97
Daily SMA50	149.78
Daily SMA100	145.35
Daily SMA200	141.37

Levels
Previous Daily High	151.35
Previous Daily Low	149.89
Previous Weekly High	150.83
Previous Weekly Low	149.38
Previous Monthly High	152.79
Previous Monthly Low	148.12
Daily Fibonacci 38.2%	150.79
Daily Fibonacci 61.8%	150.45
Daily Pivot Point S1	150.36
Daily Pivot Point S2	149.39
Daily Pivot Point S3	148.9
Daily Pivot Point R1	151.82
Daily Pivot Point R2	152.32
Daily Pivot Point R3	153.28

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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