GBP/JPY Price Analysis: Retreats from 100-DMA near 163.00
- GBP/JPY pares the biggest daily gains in a fortnight near the weekly top.
- Bullish MACD signals keep buyers hopeful unless prices break 13-day-old support line.
- Monthly resistance line adds to the upside filters.
GBP/JPY bulls take a breather after printing the biggest daily jump in two weeks, retreating to 162.85 during Thursday’s Asian session.
In doing so, the cross-currency pair reverses from the 100-DMA but stays above the key Fibonacci retracement level of the quote’s June-September moves, as well as an important support line stretched from September 26, amid bullish MACD signals.
With this, buyers are likely to keep the reins unless the quote breaks the aforementioned support line, around 160.70 by the press time. However, the latest pullback can retest the 61.8% Fibonacci retracement level of 161.10.
Also acting as a downside filter is the weekly low around 159.75 and the 50% Fibonacci retracement level of 158.75.
Alternatively, an upside clearance of the 100-DMA hurdle, close to 163.20 at the latest, could propel the GBP/JPY prices towards a one-month-long resistance line near 164.80.
Should the bulls keep reins past 164.80, the odds of witnessing a fresh high, currently around 165.75, can’t be ruled out.
Overall, GBP/JPY witnesses a pullback but remains on the bull’s radar.
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.
