GBP/JPY Price Analysis: Sellers attack multi-year highs above 158.20

• GBP/JPY remains quiet on Friday in the early Asian trading hours.
• The cross-currency pair surrenders gain near 158.20.
• Momentum oscillators hold onto the overbought zone, throwing caution for aggressive bids.

The GBP/JPY cross-currency stays relatively quiet on Friday. The pair remains pressured near 158.22.  At the time of writing, GBP/JPY is trading at 157.18, down 0.1% for the day.

GBP/JPY daily chart

On the daily chart, the GBP/JPY cross currency pair seems exhausted near a fresh six-year high made on Wednesday. The double top near 158.22 prompts bears to take some action. If the price breaks below the intraday low it could fall back to Monday’s low at 156.61. 

A break of the 156.00 psychological level, which coincides with the 23.6% Fibonacci Retracement from the lows of 149.23 could mean a low of October 15 at 155.42 for the pair. Furthermore, the Moving Average Convergence and Divergence (MACD) trades in the overbought zone. Any downtick in the MACD would bring the 154.75 horizontal support level back into the picture.

Alternatively, on the reverse side of the trade, the upside target appears at the previous day’s high of 158.21. Next, the GBP/JPY bulls seek the June 2016 high of 160.67. 

GBP/JPY additional levels