GBP/JPY Price Analysis: Falling wedge teases buyers, 156.50 is the key hurdle

GBP/JPY hovers around intraday high during the first positive day in three.
Bullish chart pattern on 4H needs validation, 50-SMA adds strength to resistance.
Key Fibonacci retracement levels, 200-SMA act as an additional downside filters.

Anil Panchal FXStreet

GBP/JPY seesaws near the daily top of 156.06, up 0.24% intraday heading into Thursday’s London open.

The cross-currency pair rises for the first time in three days while picking up bids inside an eight-day-old falling wedge bearish chart pattern.

Given the gradually rising MACD line from the bearish territory, coupled with the firmer RSI, the GBP/JPY rebound is likely to last longer.

Though, a convergence of the 50-SMA and the upper line of the stated wedge, near 156.50, becomes crucial resistance for the GBP/JPY bulls to watch.

Should the quote rises past 156.50, the monthly high of 157.76 will act as a buffer during the theoretically anticipated rally towards crossing the 2021 peak of 158.22.

On the flip side, the wedge’s support line near 155.35 limits the short-term downside of GBP/JPY ahead of 50% Fibonacci retracement (Fibo.) of December-January upside, near 153.65.

Also challenging the GBP/JPY bears is the 200-SMA level near 153.80, as well as 61.8% Fibo. of 152.67.

Overall, GBP/JPY is up for further advances and the bullish chart pattern hints at the quote’s rally past the 2021 peak until it stays above 200-SMA.

GBP/JPY: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	156
Today Daily Change	0.36
Today Daily Change %	0.23%
Today daily open	155.64

Trends
Daily SMA20	155.82
Daily SMA50	153.34
Daily SMA100	153.3
Daily SMA200	153

Levels
Previous Daily High	156.23
Previous Daily Low	155.41
Previous Weekly High	157.71
Previous Weekly Low	155.46
Previous Monthly High	156.02
Previous Monthly Low	148.98
Daily Fibonacci 38.2%	155.72
Daily Fibonacci 61.8%	155.92
Daily Pivot Point S1	155.29
Daily Pivot Point S2	154.94
Daily Pivot Point S3	154.46
Daily Pivot Point R1	156.11
Daily Pivot Point R2	156.59
Daily Pivot Point R3	156.94

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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