The GBP/JPY cross shot to fresh daily tops, around the 157.35 region during the early European session, albeit lacked any follow-through buying. The cross was last seen hovering around the 157.00 mark, nearly unchanged for the day.

The cross attracted some dip-buying near the 156.60 region on the first day of a new trading week and inched back closer to over five-year tops touched on Friday. The GBP/JPY cross bounced over 50 pips from the daily swing lows, though the uptick lacked bullish conviction.The GBP/JPY cross shot to fresh daily tops, around the 157.35 region during the early European session, albeit lacked any follow-through buying. The cross was last seen hovering around the 157.00 mark, nearly unchanged for the day.

The cross attracted some dip-buying near the 156.60 region on the first day of a new trading week and inched back closer to over five-year tops touched on Friday. The GBP/JPY cross bounced over 50 pips from the daily swing lows, though the uptick lacked bullish conviction.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

On the daily chart, the GBP/JPY cross currency pair has risen sharply after breaking the strong long-time resistance barrier near the 152.90-153.00 zone, which coincides with the 21-day and the 50-day Simple Moving Average’s (SMA) confluence. The pair embarks above the 157.00 mark for the first time since 2016. Now, the upside seems exhaustive as the formation of a Doji candlestick suggests indecisiveness among traders.

If the price breaks below the intraday’s low, it could fall back to the psychological 156.00 mark.

Furthermore, the overbought  Moving Average Convergence and Divergence (MACD) hints at more downside toward the 155.10 horizontal support level. The Relative Strength Index (RSI ) reads above 70, which suggests the stretched buying conditions.

Next, the GBP/JPY bears could approach the 154.00 horizontal support level.

Alternatively, if the price continues to move higher, the bulls would first meet the previous day’s high of 157.41. A daily close above this level would open the gates for the June 2016 high near 160.67.

GBPJPY

Oct 18 2021