MACD produces most bullish signals within five weeks. Long-term trading above 200 DMA favors buyers.
Descending trendline from February early, 50-DMA challenges upside movements
GBP/JPY is still at 154.40, a gain of 0.08% in the four-day winning streak that ended Wednesday’s Asian session.
The yen cross supports the early-week breakout at the 200-DMA and bullish MACD signals to remain firmer around a fortnight top.
The GBP/JPY bulls will be tested by a downtrending trend line starting at February 10, and ending at the 50-DMA (respectively near 154.70, and 155.10).
The monthly high at 155.25 acts as an upside filter.
However, pullbacks remain difficult beyond the 200-DMA level at 153.33.
The 61.8% Fibonacci Retracement (Fibo), of December-February upside, and the monthly low close to 152.45, seem to be tough nuts for GBP/JPY bears.
GBP/JPY has the potential to continue its upward trend, but the bulls may face a bumpy road north.
