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GBP/JPY Price Analysis: Bulls want confirmation around 168.00 critical resistance
GBP/JPY re-establishes a seven-week high, but struggles to prolong its uptrend for the eighth consecutive day. Buyers are challenged by an overbought RSI and a horizontal region as of late April. Bears must overcome several obstacles before regaining control; 161.30 looks to be the major support.
GBP/JPY dribbles about the highest levels in seven weeks and grinds higher towards 167.35-40 at press time, as bulls fight to maintain control amidst an overbought RSI.
Also threatening the GBP/JPY pair's upside is the horizontal region containing numerous highs since late April, located around 168.00.
Even if the price manages to move over 168.00, the top of February 2016 at 175.00 might be a hurdle to pair purchasers.
In contrast, corrective movements remain tricky until the price falls below the 200-SMA and monthly support line confluence at 161.30.
Nonetheless, the weekly rising trend line and the prior resistance line from May 24 at about 166.60 and 165.00 might provide a temporary pause during the projected decline.
Overall, the GBP/JPY pair is expected to retrace near short-term support lines, although a trend reversal is not imminent.
GBP/JPY
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