GBP/JPY Price Analysis: Uphill battle for bulls as 161.30 acts as immediate resistance

• GBP/JPY prints three-day uptrend as buyers keep the reins around one-week top.
• Convergence of 21-day EMA, fortnight-old descending trend line challenges short-term bulls.
• 200-day EMA appears crucial for determining further upside, MACD flashes strongest bullish signals in two months.

GBP/JPY picks up bids to renew intraday high near 160.90 during early Tuesday. In doing so, the cross-currency pair rises for the third consecutive day while reversing the previous day’s pullback from a one-week high.

The quote’s latest run-up could be linked to the strongest bullish MACD signals in nearly two months, as well as a successful rebound from horizontal support comprising multiple lows marked since late September.

Given the GBP/JPY pair’s ability to cross the 50% Fibonacci retracement level of September-October upside, the buyers are well set to battle with the 161.30 resistance confluence encompassing a two-week-old descending trend line and the 21-day Exponential Moving Average (EMA).

However, the pair’s further upside hinges on its ability to cross the 200-day EMA level of 162.55.

Also acting as an upside filter is the November 2022 low near 163.00, a break of which could direct GBP/JPY buyers toward the previous monthly high surrounding 169.30.

Alternatively, 50% and 61.8% Fibonacci retracement levels, respectively near 160.45 and 157.70, restrict short-term GBP/JPY downside.

Following that, the aforementioned horizontal support near 155.50 will be crucial for the bears to watch.

GBP/JPY: Daily chart

Trend: Further upside expected