GBP/JPY Price Analysis: Eases from three-week-old resistance line below 155.00
- GBP/JPY snaps five-day uptrend, stepping back from seven-day peak.
- Steady RSI can keep buyers hopeful until breaking 153.50 support confluence.
- 20-DMA adds to the upside filters before directing buyers to January tops.
GBP/JPY pares recent gains around 154.65, retreating from a short-term resistance line ahead of Tuesday’s European session.
In doing so, the cross-currency pair not only prints the first daily loss in six days but also eases from the highest levels since January 20, flashed the previous day.
Given the steady RSI conditions, the pair’s latest pullback from the short-term resistance line may aim to retest the 154.00 threshold.
However, a convergence of the 100-DMA and 50-DMA, near 153.50, will challenge GBP/JPY bears afterward.
Following the quote’s weakness past 153.50, January’s low near 152.90 and 61.8% Fibonacci retracement level of September-October upside, near 152.50, will be in focus.
Should GBP/JPY buyers manage to cross the immediate trend line hurdle near 154.90, the 155.00 round figure and the 20-DMA level of 155.60 will act as validation points for the pair’s further upside towards the January 2021 peak of 157.71.
Overall, GBP/JPY remains on the recovery moves above the key moving averages despite the latest pullback.
GBP/JPY: Daily chart
Trend: Bullish