- GBP/JPY seems vulnerable near-daily highs on Friday.
- Confirmation awaited for any directional bets.
- Neutral MACD tilts in favor of upside momentum.
The GBP/JPY cross failed to extend the gains of Thursday and fell below the 152 mark in the Asain session on April 30. The cross peaked at 152.12 before traveling to the intraday lows of 151.66.
At the time of writing, GBP/JPY is trading at 151.75, down 0.06% on the day.
GBP/JPY daily chart
On the daily chart, the cross is facing rejection above the 152.20 mark, the descending trend line from April 5, at 153.36, acts as a strong line of defence for GBP/JPY bulls. However, if the price makes an effort to move higher, then it would meet its first resistance at Thursday’s high of 152.41, which would also mark the breach of the downward slope line and, thus, push prices toward the 153 horizontal resistance zone. Next, the prices would love to kiss early April highs of 153.43.
The Moving Average Convergence Divergence (MACD) indicator is comfortably placed above the midline, however, a slight downtick will ask bears to take centre stage and would pull prices toward the 151 horizontal support zone. On moving lower, the next stop will be the 50-day simple moving average (SMA) placed at 150.65 and then the lows of April 27 around 150.15 cannot be ruled out.