GBP/JPY Price Analysis: Extends resistance breakout towards 185.00 on mixed BoE, BoJ concerns

• GBP/JPY stretches previous rebound from monthly support to cross one-week-old resistance line, edges higher of late.
• Bullish MACD signals, upbeat RSI conditions add strength to recovery moves toward 50-SMA.
• 200-SMA acts as an extra filter towards the south.

GBP/JPY remains on the front foot for the second consecutive day, refreshing intraday high near 184.70 amid early Monday morning in Europe. In doing so, the cross-currency pair extends the previous day’s rebound from the horizontal support comprising multiple levels marked since early August amid mixed concerns about the Bank of England (BoE) and the Bank of Japan (BoJ).

Although BoE Deputy Governor Ben Broadbent cited the need for higher rates due to the wage pressure at the Jackson Hole Symposium, his economic outlook seems to challenge the hawks and the British Pound (GBP) optimists.

Also read: BoE’s Broadbent cites knock-on effects of the surge in prices to signal higher rates “for some time yet”

On the other hand, BoJ Governor Governor Kazuo Ueda cited a bit below target Japan inflation to defend the currently ultra-easy monetary policy.

Also read: BoJ’s Ueda highlights “a bit below” inflation to defend current monetary easing framework

Additionally, bullish MACD signals and the upward-sloping RSI (14), not overbought, also underpin the upside bias about the GBP/JPY pair.

With this, the cross-currency pair appears well-set to prod the 50-SMA hurdle of around 185.15. That said, the 185.00 round figure restricts the immediate upside of the GBP/JPY pair.

In a case where the GBP/JPY remains firmer past 185.15, the yearly high marked in August at around 186.80 will be in the spotlight.

On the contrary, a downside break of the previous resistance line stretched from August 22, close to 183.90 by the press time, can drag the GBP/JPY prices toward the aforementioned horizontal support near 183.30.

Following that, the 200-SMA level of 182.70 acts as the final defense of the pair buyers.

GBP/JPY: Four-hour chart

Trend: Further upside expected