GBP/JPY Price Analysis: Pierces 200-HMA as BOJ leaves monetary policy unchanged
- GBP/JPY prints three-day uptrend despite the latest pullback from intraday high.
- Immediate support line, bullish MACD signals and BOJ’s inaction together help buyers.
- Sellers have a bumpy road to travel before taking control.
GBP/JPY reverses the knee-jerk reaction to the Bank of Japan’s (BOJ) monetary policy meeting while staying firmer around 164.60 during Friday’s Asian session. In doing so, the cross-currency pair rises for the third consecutive day as buyers poke the 200-HMA hurdle.
In addition to the BOJ’s refrain from following the major central banks, bullish MACD signals and upward sloping trend line from Thursday’s low also keep GBP/JPY buyers hopeful.
Read: BOJ leaves unchanged its guidance on policy bias, maintains dovish rhetoric
That said, a clear upside break of the 200-HMA level surrounding 165.10 appears necessary for the bulls to keep reins.
Also challenging the immediate advance is the 61.8% Fibonacci retracement of the June 09-16 downtrend.
Following that, a run-up towards the monthly peak of 168.73, as well as the 170.00 threshold, can’t be ruled out.
On the contrary, pullback moves remain elusive until the quote stay beyond the aforementioned support line, near 164.00 by the press time.
In a case where GBP/JPY remains pressured after 164.00, multiple supports around 163.80, 162.30 and 161.40 could challenge the pair’s further downside.
GBP/JPY: Hourly 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.
