- GBP/JPY picks up bids to refresh intraday high, prints the first daily gain in four.
- Clear break of immediate descending trend line, 50-HMA favor buyers.
- Upbeat oscillators add strength to bullish bias targeting 200-HMA.
GBP/JPY renews intraday high near 160.35 as bulls return to the table amid early Monday in London, after a three-day absence. In doing so, the quote pierces 50-Hour Moving Average (HMA) in an attempt to please the buyers.
That said, the cross-currency pair’s latest rebound could be linked to the quote’s successful break of a downward-sloping resistance line from the last Wednesday. Adding strength to the upside bias are the bullish MACD signals and ascending RSI (14) line, not overbought.
Although the GBP/JPY buyers are likely to keep the reins, at least for a while, the 200-HMA hurdle surrounding 161.10 holds the key for the pair’s further upside.
Following that, the previous weekly top and the monthly high, respectively around 163.35 and 164.25, could lure the bulls.
Meanwhile, the 160.00 psychological magnet limits the immediate downside of the GBP/JPY price ahead of the resistance-turned-support line of around 159.50.
Should the cross-currency pair slip beneath the 159.50 mark, the monthly low of 158.27, marked the previous day, may lure the GBP/JPY bears.
To sum up, GBP/JPY is likely to rise further but the pair’s upside past 200-HMA needs strong catalysts to convince bulls.
GBP/JPY: Hourly chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers around 1.0700 ahead of German IFO survey
EUR/USD is consolidating recovery gains at around 1.0700 in the European morning on Wednesday. The pair stays afloat amid strong Eurozone business activity data against cooling US manufacturing and services sectors. Germany's IFO survey is next in focus.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin (WLD) price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.