GBP/JPY Price Analysis: Recovery remains elusive below 163.70, BOE in focus

• GBP/JPY grinds higher during three-day rebound from a 10-week low.
• 50-EMA, fortnight-old horizontal hurdle guards immediate upside.
• Convergence of 61.8% Fibonacci retracement level, 200-EMA appears a tough nut to crack for the bulls.
• 20-EMA, weekly support line could challenge pullback moves.

GBP/JPY bulls struggle to keep reins around 162.60 as traders await the key Bank of England (BOE) Monetary Policy decisions during the Asian session on “Super Thursday”.

Also read: Bank of England Preview: Bailey to deal blow to pound with dovish hike, what to watch for

A convergence of the 50-EMA and a horizontal resistance from July 22 appears to challenge the pair buyers of late. However, steady RSI and bullish MACD signals hint at the quote’s further upside.

It’s worth noting that the GBP/JPY bull’s dominance beyond the 50-EMA level of 162.85 and the aforementioned horizontal resistance near 163.00-05 won’t be too long. That said, a convergence of the 200-EMA and the 61.8% Fibonacci retracement of July 27 to August 02 move, near 163.70, appears a tough nut to crack for the pair buyers.

Should the GBP/JPY prices rise beyond 163.70, the odds of witnessing a run-up towards the late July swing high of 165.28 can’t be ruled out.

Alternatively, pullback remains elusive until the quote stays above the weekly support line and the 20-EMA, respectively around 162.30 and 162.15.

Following that, the 23.6% Fibonacci retracement level could act as the last defense for the GBP/JPY bulls before directing them to the monthly low of 159.44.

GBP/JPY: Four-hour chart

Trend: Limited upside expected