GBP/JPY Price Analysis: Pokes support-turned-resistance near 156.00, bulls stay hopeful

GBP/JPY reverses previous day’s losses, bounces off three-week-old support line.
Weekly ascending channel, 78.6% Fibonacci retracement guards immediate upside.
Bearish need cautious until witnessing clear downside break of 200-SMA.
Firmer RSI, sustained trading above key SMA favor bulls.

Anil Panchal FXStreet

GBP/JPY rises 0.25% intraday around 155.86, grinding higher at the two-month top during Tuesday’s European morning.

The cross-currency pair snapped a three-day uptrend the previous before bouncing off an ascending support line from December 16. The recovery moves also take clues from firmer RSI, not overbought.

It should be noted, however, that the quote still holds the previous downside break of a one-week-long ascending trend channel, which triggered Monday’s declines.

Hence, a clear upside break of the stated channel’s resistance line, around 156.00 by the press time, becomes necessary for the GBP/JPY buyers to keep reins.

Following that, 78.6% Fibonacci retracement (Fibo.) level of October-December 2021 downside, near 156.25, may offer an intermediate halt during the quote’s rally towards the last year's top of 158.22.

Alternatively, the stated support line, previous resistance, can challenge the intraday GBP/JPY sellers around 155.00. Also adding to the downside filter is the 61.8% Fibo. level near 154.70.

In a case where GBP/JPY drops below 154.70, the early November’s swing low near 152.40 may act as an intermediate halt before directing bears to the 200-SMA level of 152.10.

GBP/JPY: Four-hour chart

Trend: Bullish

Additional important levels

Overview
Today last price	155.86
Today Daily Change	0.38
Today Daily Change %	0.24%
Today daily open	155.48

Trends
Daily SMA20	152.29
Daily SMA50	152.93
Daily SMA100	152.59
Daily SMA200	152.69

Levels
Previous Daily High	155.93
Previous Daily Low	154.89
Previous Weekly High	156.02
Previous Weekly Low	153.31
Previous Monthly High	156.02
Previous Monthly Low	148.98
Daily Fibonacci 38.2%	155.29
Daily Fibonacci 61.8%	155.53
Daily Pivot Point S1	154.94
Daily Pivot Point S2	154.4
Daily Pivot Point S3	153.9
Daily Pivot Point R1	155.97
Daily Pivot Point R2	156.47
Daily Pivot Point R3	157.01

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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