GBP/JPY Price Analysis: Picks up bids towards 157.00 inside bullish flag

• GBP/JPY extends recent gains to refresh intraday high.
• Firmer Momentum line favor upside moves, confirmation of bullish chart pattern becomes necessary.
• 50-SMA guards immediate upside ahead of flag’s resistance line.
• Sellers have a bumpy road until breaking 200-SMA.

GBP/JPY rises for the second consecutive day, refreshing intraday high to 156.76, up 0.12% on a day, during Friday’s Asian session.

In doing so, the quote takes the bids inside a bullish flag formation amid a firmer Momentum line.

Even so, the 50-SMA level surrounding the 157.00 threshold challenges the quote’s immediate upside ahead of the flag’s resistance line, close to 157.55 by the press time.

It’s worth noting that sustained trading beyond 157.55 will theoretically trigger the rally targeting May 2016 peak near 164.00. During the rise, the recent high near 158.20 and the 160.00 round figure may challenge GBP/JPY bulls.

On the contrary, 100-SMA restricts the quote’s immediate pullback moves, if any, around 155.70, a break of which will direct GBP/JPY prices towards testing the stated flag’s support line near 155.50.

In a case where the cross-currency pair drops below 155.50, the bullish chart pattern gets rejected, which in turn will drag the sellers towards October 12 low near 153.70. However, the 200-SMA level of 153.27 can question any further downside.

GBP/JPY: Four-hour chart

Trend: Further upside expected