GBP/JPY Price Analysis: Pierces 50-HMA to snap three-day losing streak above 160.00
- 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
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.
