GBP/JPY Price Analysis: Overbought RSI, weekly horizontal hurdle test buyers above 157.00

• GBP/JPY extends Friday’s rebound, stays firmer around intraday top at the latest.
• Two-day-old ascending trend line guards immediate upside ahead of the horizontal area from December 04.
• Upward sloping support line from the last Monday, 100-HMA restricts nearby losses.

GBP/JPY picks up bids to 157.32, up 0.14% intraday, while portraying the second consecutive daily gains during early Monday morning in Europe.

Even so, overbought RSI conditions and the short-term key resistances challenge the pair buyers.

Among them, an upward sloping trend line from Thursday, near 157.40, acts as an immediate resistance, a break of which will direct the quote towards a one-week-long horizontal resistance region near 157.45-50.

If at all the GBP/JPY buyers manage to keep reins past 157.50, the recent highs of 157.76 may act as a buffer ahead of challenging the year 2021 peak of 158.22.

Meanwhile, pullback moves remain elusive until staying beyond the short-term support line and the 100-HMA, respectively near 157.00 and 156.85.

However, a clear downside break of 156.85 will direct the quote towards Thursday’s low of 156.00, a break of which will challenge the GBP/JPY bulls to rethink their upside bias.

GBP/JPY: Hourly chart

Trend: Pullback expected