#GBPJPY @ 167.616 reverses the week-start rebound while taking a U-turn from a six-month-old resistance line., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• GBP/JPY reverses the week-start rebound while taking a U-turn from a six-month-old resistance line.
• Oscillators, sustained trading beyond monthly support keeps buyers hopeful.
• 50-DMA adds to the downside filters, 175.00 could lure bulls during a strong run-up.

The pair currently trades last at 167.616.

The previous day high was 169.58 while the previous day low was 164.95. The daily 38.2% Fib levels comes at 166.72, expected to provide support. Similarly, the daily 61.8% fib level is at 167.81, expected to provide resistance.

GBP/JPY takes offers to renew intraday low around 166.60, reversing the week-start run-up, as it drops towards one-month-old support during Monday’s Asian session. In doing so, the yen cross again reverses from the six-month-old upward-sloping resistance line.

However, bullish MACD signals and the steady RSI requires the GBP/JPY bears to remain cautious unless they break the aforementioned support line, around 166.20 by the press time, as well as conquer the 166.00 thresholds.

Following that, a downward trajectory towards the 50-DMA support of 163.10 becomes imminent.

Though, the 160.00 psychological magnet and the monthly low near 159.70 could challenge the GBP/JPY sellers afterward.

On the flip side, a daily closing beyond the ascending resistance line from April, around 169.85, as well as a successful break of the 170.00 round figure, becomes necessary for the GBP/JPY buyers.

In that case, a run-up toward the February 2016 high near 175.00 will be much more likely on the bull’s radar.

Overall, GBP/JPY remains on the buyer’s radar despite the latest pullback from the key resistance line. However, the odds of the short-term downside can’t be ruled out.

Trend: Further upside expected

Technical Levels: Supports and Resistances

GBPJPY currently trading at 165.87 at the time of writing. Pair opened at 167.15 and is trading with a change of -0.77 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 163.22, 50 SMA 162.93, 100 SMA @ 163.58 and 200 SMA @ 161.12.

The previous day high was 169.58 while the previous day low was 164.95. The daily 38.2% Fib levels comes at 166.72, expected to provide support. Similarly, the daily 61.8% fib level is at 167.81, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 164.87, 162.59, 160.24
• Pivot resistance is noted at 169.5, 171.86, 174.14

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