GBP/JPY Price Analysis: Keeps 100-DMA breakout near weekly top
- GBP/JPY picks up bids during a four-day uptrend around the week’s high.
- 100-DMA break pushes buyers toward a bumpy road unless crossing downward sloping trend line from late May.
- 13-day-old rising trend line adds to the downside filters.
GBP/JPY bulls attack 153.00, bouncing off intraday low, amid Friday’s Asian session. In doing so, the cross-currency pair rises for the fourth consecutive day while staying near the weekly top.
While the quote’s ability to cross 100-DMA propelled it to the week’s high, a downswing in the Momentum line and key hurdles on the way to the north challenges the pair traders.
Among them, a convergence of 50-DMA and a monthly resistance line, around 153.20–30, restricts immediate upside, a break of which will direct the quote towards a multi-day-old falling trend line, near 153.55.
If at all, the GBP/JPY bulls manage to cross 153.55, the last month’s top around 154.10 should return to the charts.
On the flip side, 100-DMA and an upward sloping trend line from July 20, respectively around 152.60 and 152.00, limit the quote’s short-term declines.
Also testing GBP/JPY sellers is the monthly low near 151.15 and early July’s low of 150.67.
Overall, GBP/JPY is likely to extend the recovery moves from Tuesday but a bumpy road will test the bullish commitments.
GBP/JPY: Daily chart
Trend: Further upside 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.
