GBP/JPY Price Analysis: Battles weekly resistance line above 139.50 amid overbought RSI

  • GBP/JPY keeps recovery moves from 138.60 to attack a descending trend line from August 13.
  • Bullish MACD, sustained trading beyond 100-HMA challenge overbought RSI.
  • The monthly top adds to the upside barriers, 61.8% Fibonacci retracement offers strong downside support.

GBP/JPY seesaws around 139.50/55 during the pre-Tokyo open Asian session on Wednesday. The pound cross refreshed weekly top during the previous day but overbought RSI conditions question bulls around a four-day-old descending trend line resistance. Even so, bulls remain hopeful as the pair’s successful trading past-100-HMA joins upbeat MACD signals.

As a result, optimists can aim for the 140.00 threshold if witnessing a clear break above 139.60 trend line resistance. However, the monthly top near 140.20 could question the buyers afterward.

It should, however, be noted that the pair’s ability to cross 140.20 will propel it towards January 2020 low near 141.00.

On the contrary, a downside break of 100-HMA, currently around 139.40, can pull the pair back to 61.8% Fibonacci retracement level of August 07-13 upside, near 138.75.

Though, 138.00 and the monthly bottom close to 137.75 will challenge the pair sellers below 138.75.

GBP/JPY hourly chart

Trend: Bullish

 

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