Further Upside Movement Of The GBP/JPY Pair Is Expected
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- GBP/JPY picks up bids to pare intraday losses, mildly offered after three-week uptrend.
- 50-EMA, one-month-old ascending trend line restricts immediate downside.
- Sluggish oscillators channel buyers on their way to refresh 2023 top.
GBP/JPY marks a consecutive fourth bounce off a one-month-old ascending trend line, as well as the 50-bar Exponential Moving Average (EMA), as it consolidates the daily loss around 163.35 during the early hours of Monday’s trading in London.
It’s worth observing that the sluggish prints of the MACD signals, mostly bearish, join the steady RSI (14) line to challenge the cross-currency pair’s immediate moves.
Also acting as an immediate upside hurdle is the 23.6% Fibonacci retracement of February’s upside, near 163.80.
Following that, 164.50 and 164.80 can act as extra filters to the north before directing the GBP/JPY bulls towards the previous monthly high, also the highest level of 2023, surrounding the 166.00 round figure.
Should the quote remains firmer past 166.00, the last December’s peak of 169.30 and the 170.00 psychological magnet might lure the GBP/JPY buyers ahead of highlighting the previous yearly top of 172.13 as the next target.
On the flip side, a clear downside break of the 163.00 support confluence could quickly fetch the GBP/JPY price towards the mid-February peak of near 162.20.
If the cross-currency pair remains weak past 162.20, the 50% and 61.8% Fibonacci retracement levels, around 161.35 and 160.30 in that order, can lure the bears.
GBP/JPY: Four-hour chart
Trend: Further upside expected
