GBP/JPY Price Analysis: Renews six-week top as bulls target 166.30

• GBP/JPY picks up bids to refresh multi-day high, prints three-day uptrend.
• Clear upside break of three-month-old descending trend line, key DMA confluence favor buyers.
• Monthly support line adds to the downside filters, bullish MACD signals further advances.

GBP/JPY takes the bids to refresh the monthly high near 165.60 heading into Wednesday’s London open. In doing so, the cross-currency pair justifies an upside break of the three-month-long bearish trend line, as well as the convergence of the 50-DMA and 100-DMA.

As the bullish MACD signals back the quote’s latest run-up, the upside momentum is ready to challenge the highs marked during late July around 166.30.

Following that, June’s peak and the yearly top, respectively near 167.85 and 168.75, will gain the GBP/JPY buyer’s attention.

In a case where the quote remains firmer past 168.75, the 170.00 psychological magnet will be in focus.

Alternatively, pullback moves remain elusive until staying beyond the resistance-turned-support line from early June, around 164.35 by the press time.

Even so, the convergence of the 50-DMA and the 100-DMA, around 162.90-163.00, could test the GBP/JPY bears.

It’s worth noting that a monthly ascending support line, near 161.00, appears the last defense of the pair buyers.

GBP/JPY: Daily chart

Trend: Further upside expected