GBP/JPY Price Analysis: Dribbles around mid-164.00s inside bullish channel
- GBP/JPY prints four-day uptrend inside weekly ascending trend channel.
- Gradually rising RSI, sustained trading above 100-SMA favor bulls.
- Convergence of the previous resistance line, channel’s support offers a tough nut to crack for sellers.
GBP/JPY grinds higher around 164.50 heading into Monday’s London open. In doing so, the cross-currency pair keeps Thursday’s upside break of the monthly resistance line, now support, inside an ascending trend channel from July 06.
In addition to the trend line breakout, the pair’s successful trading above the 100-SMA joins a firmer RSI (14) to keep buyers hopeful.
That said, the 38.2% Fibonacci retracement of June 16-21 upside, near 164.85, appears immediate hurdle for the pair traders to watch before directing bulls to the stated channel’s upper line, at 165.80 by the press time.
Should GBP/JPY bulls keep reins past 165.80, multiple hurdles around 167.00 can test the upside momentum ahead of highlighting the tops marked in June around 167.85 and 168.75.
Meanwhile, the 100-SMA level of 164.12 restricts the immediate downside of GBP/JPY before the 50% Fibonacci retracement level near 163.90.
It’s worth noting, however, that the pair’s declines past 163.90 appear difficult as a confluence of the resistance-turned-support and lower line of the stated channel highlights 163.15 as the key support.
GBP/JPY: Four-hour chart
Trend: Further upside expected