GBP/JPY Price Analysis: Bulls approach 166.50 key resistance

• GBP/JPY remains firmer around one-week high, up for the fifth consecutive day.
• Upside break of February’s high keeps buyers hopeful, two-week-old support line also restricts immediate declines.
• Six-week-old ascending trend line joins overbought RSI (14) to suggest limited room towards the north.

GBP/JPY buyers keep the reins for the fifth consecutive day as the cross-currency pair makes rounds to a one-week high surrounding 166.15-20 during early Wednesday.

The quote’s latest run-up could be linked to a successful upside break of February’s high, near 166.00, as well as the bullish MACD signals.

However, an upward-sloping resistance line from late February can challenge the GBP/JPY bulls around 166.50 amid the overbought RSI (14) conditions.

Should the pair crosses the 166.50 key resistance line, the last December’s high of around 169.30 and the 170.00 round figure can lure the GBP/USD bulls. Following that, the previous yearly high surrounding 172.15 will be in the spotlight.

On the flip side, a clear break of 166.00 can trigger an intraday fall of the GBP/JPY pair. However, a fortnight-old ascending trend line, near 164.85 by the press time, can restrict the quote’s further downside.

In a case where the GBP/JPY bears keep the reins past 164.85, the 200-SMA level of 162.85 becomes crucial to watch as it holds the key to the pair’s south-run towards a 2.5-month-long support line, close to 159.75 at the latest.

To sum up, GBP/JPY is likely to remain firmer even if the 166.50 challenges the quote’s immediate upside.

GBP/JPY: Four-hour chart

Trend: Pullback expected