GBP/JPY Price Analysis: Buyers defend 156.00 critical support

• GBP/JPY accumulates gains on Monday in the early Asian trading hours.
• The cross-currency pair took a breather near 156.00 following a two days sell-off.
• The momentum oscillator holds onto the overbought zone, throwing caution for aggressive bids.

The GBP/JPY cross-currency pair remains upbeat on the fresh trading week. The pair opened lower but managed to catch the upside momentum. At the time of writing, GBP/JPY is trading at 156.47, up 0.21% for the day.

GBP/JPY daily chart

On the daily chart, the GBP/JPY cross currency pair seems exhausted near a fresh six-year high made on Wednesday. The double top near 158.22 prompts bears to take some action, which resulted in two days sell-off of more than 300-pips. 

The price sustained the 156.00 psychological level and is on the way to climb back to the 157.00 horizontal resistance level. A successful daily close above 157.00 would again prompt the bulls to test the multi-year highs above 158.20.

Alternatively, the Moving Average Convergence and Divergence (MACD) trades in the overbought zone. Any downtick in the MACD along with the break of 156.00 would bring selling opportunities in the pair. In that case,the first downside target appears at the low of October, 15 at 155.42, followed by the 155.00 horizontal support level. 

Next, the market participant would aim at the 154.00 horizontal support zone.

GBP/JPY additional levels