The GBPJPY cross struggles to gain any meaningful traction and seesaws between tepid gains/minor losses through the early European session on Thursday. The cross is currently placed near the top end of its weekly range, just above the 166.00 mark, awaiting the UK government's financial plan before the next leg of a directional move.

The fundamental backdrop supports prospects for a further near-term appreciating move for the GBPJPY cross, though bulls prefer to wait on the sidelines ahead of the key event risk. This makes it prudent to wait for some follow-through buying before positioning for additional intraday gains. That said, any meaningful downtick could attract some buyers near the 100-day SMA support, which should now act as a key pivotal point.

The quote’s failure to cheer the previous key resistance could be linked to the bearish MACD signals, as well as the cautious mood ahead of the key UK event.

That said, the GBPJPY buyers could witness a bumpy road during the further upside as the previous weekly top near 169.10 precedes the 170.00 psychological magnet and October 2022 high near 172.15 to challenge the pair’s further advances.

Meanwhile, pullback moves will initially have to remain below the previous resistance line stretched from October 31, around 165.70 by the press time.

Following that, the 100-DMA and the 200-DMA, respectively near 164.00 and 162.30, should challenge the GBPJPY buyers.

In a case where the pair remains bearish past 162.30, the October 11-12 swing low near 159.70 will be a tough nut to crack for the GBPJPY bears.

Overall, GBPJPY remains bullish even if the road to the north is bumpy and long.

GBPJPY to advance higher on Tax Rate hikes

Nov 17 2022