GBP/JPY Price Analysis: 21-DMA probes bulls at monthly top, BOE in focus
- GBP/JPY seesaws around two-week high, recently bouncing off intraday low.
- Descending resistance line from October, 200-DMA also challenge upside momentum.
- Steady RSI favor buyers, five-month-long support line restricts downside.
GBP/JPY pauses two-day uptrend, grinds higher past-151.00 during early European morning on Thursday.
Even as 21-DMA guards short-term GBP/JPY upside around the monthly peak, steady RSI keeps buyers hopeful of overcoming the 151.40 nearby resistance.
Also testing the GBP/JPY buyers is the 61.8% Fibonacci retracement (Fibo.) level of July-October upside and 200-DMA, respectively around 152.20 and 152.55.
In a case where the GBP/JPY prices rally past 152.55, 50% Fibo. near 153.40 should lure the pair bulls.
Alternatively, pullback moves may initially aim for the 150.00 psychological magnet, a break of which will direct GBP/JPY sellers towards an ascending support line from July, near 149.55.
During the quote’s weakness past 149.55, the yearly bottom surrounding 148.45 will be crucial to watch.
Overall, GBP/JPY traders consolidate weekly gains ahead of the key Bank of England (BOE) monetary policy meeting.
Read: BOE Preview: Omicron eliminates rate hike chances, voting pattern critical to GBP/USD reaction
GBP/JPY: Daily chart
Trend: Pullback expected