GBP/JPY Price Analysis: Bulls keep reins above 156.00 with eyes on BOJ

• GBP/JPY picks up bids to reverse the previous day’s pullback from monthly top.
• Sustained trading beyond key SMA, horizontal area keeps buyers hopeful.
• Overbought RSI challenges further upside, multiple level to challenge bulls below 157.00.

GBP/JPY regains upside momentum, after taking a U-turn from a three-week top the previous day. That said, the yen cross rises to 156.25, up 0.20% intraday heading into the Bank of Japan (BOJ) monetary policy announcement during Friday’s Asian session.

Read: USD/JPY Weekly Forecast: Federal Reserve and the Bank of Japan head for different exits

Although overbought RSI conditions test the latest upside momentum, the pair’s successful trading above 200-SMA, as well as a horizontal area from early February, keep buyers hopeful.

That said, the recent high near 156.70 and the late February’s top close to 156.80 restricts the quote’s immediate upside ahead of the 157.00 threshold.

Following that, 157.30 and February’s peak of 158.06 will challenge the GBP/JPY upside.

On the contrary, 61.8% Fibonacci retracement of February-March downside, around 155.35, offers immediate support to the pair ahead of the aforementioned horizontal area surrounding 155.10-20.

Following that, the 200-SMA level surrounding 155.00 will be in focus.

It’s worth noting that trend lines from early March add to downside filters around 155.40 and 154.35.

GBP/JPY: Four-hour chart

Trend: Further upside expected