• GBP/JPY remains on the front foot for the third consecutive day around five-week top.
  • Clear upside break of five-month-old resistance line, bullish MACD favor buyers.
  • Short-term bull cross adds to the upside bias, 10-DMA restricts immediate downside.

GBP/JPY holds onto the week-start gains around 157.50, the highest levels since early February, as bulls stay firmer beyond the key hurdle during Tuesday’s Asian session.

The cross-currency pair rallied past a downward sloping resistance line from October 2021 the previous day, now support around 157.30.

The trend line breakout takes clues from the bullish MACD signals and the 10-DMA’s piercing off the 21-DMA, known as a bull cross, to suggest the quote’s further upside.

That said, February’s high near 158.10 gains the immediate attention of the GBP/JPY bulls ahead of the October 2021 peak of 158.22.

In a case where the pair rallies past 158.22, June 2016 high near 160.15 will gain the market’s attention.

Alternatively, pullback moves remain less worrisome until staying beyond the resistance-turned-support line near 157.30.

Following that, the 10-DMA and the 21-DMA levels, surrounding 155.00 and 154.35 respectively, will act as the last defenses for the GBP/JPY bulls.

GBP/JPY: Daily chart

Trend: Further upside expected

This article was originally published by Fxstreet.com.Read the original article here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here