GBP/JPY technical analysis: Struggles between 50/100HMA confluence, immediate resistance line

Short-term key HMAs limit the GBP/JPY pair’s downside whereas immediate descending trend-line caps the rise.
Technical indicators signal exhaustion of selling pressure.

Anil Panchal FXStreet

Having bounced from 50/100 HMA, GBP/JPY takes the bids to 134.80 during the early Asian trading session on Monday.

While recent U-turn from 50 and 100-hour moving averages (HMAs) favor the pair’s advances, a downward sloping trend-line since July 12 restricts the rise.

However, 14-bar relative strength index (RSI) and 12-bar moving average convergence and divergence (MACD) signal exhaustion of selling pressure.

As a result, the quote’s run-up towards 50% Fibonacci retracement level of 135.07 and a follow-on rally to 135.50 on the successful break of 134.92 resistance-line can’t be denied.

Alternatively, pair’s decline below 134.59/56 support confluence can recall 134.00 and 133.85 on the chart.

GBP/JPY hourly chart

Trend: Bullish

1. R3 135.42
2. R2 135.21
3. R1 134.96
PP 134.75
1. S1 134.5
2. S2 134.29
3. S3 134.04

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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