GBP/JPY Price Analysis: Pulls back towards 156.00 amid overbought RSI

• GBP/JPY consolidates the heaviest daily gains since September 23 around 10-week high.
• Mid-October tops restrict immediate upside, RSI signals short-term downside.
• 10-DMA adds to the downside filters, yearly peak on bull’s radar.

GBP/JPY refreshes intraday low around 156.85, down 0.12% intraday during early Wednesday morning in Europe.

The cross-currency pair jumped to the highest levels last seen on October 26 while posting the biggest daily jump in over three months the previous day. However, overbought RSI and mid-October peaks allowed GBP/JPY bulls to take a breather afterward.

The latest weakness directs the quote towards a horizontal area from May, around 156.00, but the 10-DMA level of 155.10, may restrict the further downside.

In a case where the GBP/JPY prices drop below 155.10, the 155.00 threshold and November's high of 154.74 will challenge the pair bears.

Alternatively, a clear upside break of the latest swing high near 157.45 will direct GBP/JPY bulls towards 157.80 and the 158.00 round figure before challenging the last year’s peak of 158.22.

It’s worth observing that the pair’s ability to stay beyond 158.22 will push it towards the 160.00 psychological magnet before May 2016 peak around 163.90.

GBP/JPY: Daily chart

Trend: Pullback expected