GBP/JPY Price Analysis: Remains upward biased, despite struggling at 158.00

• The lack of catalysts of the GBP/JPY would keep it subject to market mood.
• GBP/JPY traders beware of the developments of the GBP/USD as USD strength looms, courtesy of higher US Treasury yields.
• GBP/JPY is upward biased and would accelerate its uptrend if GBP bulls reclaim 158.00.

On Thursday, the GBP/JPY gained some 0.58%. The rally on the GBP/JPY was triggered by the GBP/USD price action, which jumped on the release of high US inflation, towards 1.3643, retreating later on the day, as money market futures have priced in a 100% chance of the US central bank hiking rates 50 bps, on the March meeting. At the time of writing, the GBP/JPY is trading at 157.35.

The market mood is risk-off. US equities recorded losses in the cash market, while Asian equity futures are headed towards a lower open, as market players flight towards safe-haven assets.

GBP/JPY Price Forecast: Technical outlook

Putting those factors aside, the GBP/JPY witnessed a rally of 200-pips. During the Asian session, the GBP/JPY was subdued, but as American traders got to their desks, alongside the overlap with European markets in full swing, spurred a jump near 158.00. Once GBP bulls struggled at 158.00, the cross-currency fell towards 157.33.

The GBP/JPY first resistance would be a five-month-old downslope trendline lying around the 157.45-65 region. Once cleared, the GBP/JPY next resistance would be February 10 daily high at 158.06, followed by October 20, 2021, daily high at 158.22.

On the flip side, the GBP/JPY first support would be 157.00, followed by a one-month-old downslope trendline broken on February 10, around 156.60-70, and February 10 daily low 156.19.