- GBP/JPY picks up bids to portray a three-day uptrend.
- Sustained break of weekly resistance line directs buyers towards a fortnight-old hurdle.
- Convergence of the key SMAs, resistance-turned-support and an immediate upward sloping trend line highlight 165.40 as the key support.
GBP/JPY refreshes intraday high near 166.40 during the third positive daily performance amid Tuesday’s Asian session.
In doing so, the cross-currency pair justifies the previous day’s upside break of a one-week-old resistance line amid sluggish MACD signals.
With this, the quote aims for a downward sloping trend line resistance from June 09, around 167.50.
However, the GBP/JPY pair’s upside past 167.50 will be challenged by the previous weekly top and the monthly high, respectively surrounding 167.90 and 168.75, before directing the advances toward the 170.00 psychological magnet.
Alternatively, pullback moves remain elusive until staying beyond the 165.40 support confluence, including the 50-SMA, 100-SMA and an ascending support line from June 23, not to forget the one-week-old previous resistance line.
In a case where the GBP/JPY prices decline below 165.40, the odds of witnessing a slump towards the 200-SMA level near 162.90 can’t be ruled out.
Overall, GBP/JPY has limited upside room but the bears will have a tough time until breaking 165.40.
GBP/JPY: Four-hour chart
Trend: Further upside expected