GBP/JPY Price Analysis: Bounces off nearby support line but recovery remains elusive below 185.50

• GBP/JPY picks up bids to reverse the previous day’s retreat from weekly top.
• Three-week-old ascending support line puts a floor under the prices.
• 50-SMA, multiple hurdles since mid-August restrict immediate upside.
• Corrective bounce in yields adds strength to the GBP/JPY rebound but mixed sentiment prods bulls.

GBP/JPY renews intraday high to 184.60 as it reverses the previous day’s pullback from the weekly top heading into Wednesday’s London open. In doing so, the cross-currency pair recovers from a three-week-old rising support line while tracing the Treasury bond yields.

However, sluggish oscillators and multiple technical hurdles toward the north prods the GBP/JPY bulls.

That said, the 50-SMA hurdle of around 184.85 guards immediate upside. However, major attention is on the two-week-long horizontal resistance area surrounding 185.40-50.

Following that, a run-up towards the yearly high marked earlier in the month around 186.80 can’t be ruled out.

On the flip side, a clear break of the stated support line, close to 184.15, will seek validation from the 184.00 round figure before poking the early-month swing high of around 183.25.

Should the quote remain bearish past 183.25, the 61.8% Fibonacci retracement of July 28 to August 22 upside, near 180.30, and the 180.00 round figure, will lure the GBP/JPY sellers.

It’s worth noting that the likely cautious optimism and mixed concerns about the UK may allow the GBP/JPY to grind higher.

GBP/JPY: Four-hour chart

Trend: Limited recovery expected