GBP/JPY Price Analysis: Bulls cheer Wednesday’s dragonfly Doji to aim for 150.00
- GBP/JPY takes the bids to refresh intraday high, keeps bounce off four-month low.
- Further gains envisioned on oversold RSI, bullish candlestick pattern.
- Previous support line from late June tests recovery moves.
- Bears need to conquer 148.50 to retake controls.
GBP/JPY stays bid following the previous day’s U-turn from late March lows, up 0.15% intraday to refresh the day’s high with 149.95, during Wednesday’s Asian session.
The cross-currency pair’s rebound from a multi-day low on Tuesday portrayed a bullish candlestick formation, dragonfly Doji, on the daily chart. The recovery hints from daily candle also gain support from RSI recovery from the oversold area.
Hence, the latest up-move aims the support-turned-resistance line from June 21, surrounding 150.15. Though, the quote needs to cross the 150.00 threshold for that.
Additionally, the early July’s swing lows near 150.70 and 23.6% Fibonacci retracement of January-May upside, near 152.16 will tough resistances to watch during the GBP/JPY upside.
Alternatively, 38.2% Fibonacci retracement level near 149.70 offers immediate support during the quote’s pullback moves ahead of the key 148.45-50 region comprising lows marked since March.
To sum up, GBP/JPY corrective pullback is likely to extend but has miles to go before reversing the trend.
GBP/JPY: Daily chart
Trend: Further recovery expected