GBP/JPY Price Analysis: Bulls in play, eyeing break of trendline resistance

• GBP/JPY bulls are in play and a test of trendline resistance is on the cards. 
• Bulls eye prospects of a move into the 163.70s.

GBP/JPY is up some 0.1% and has picked up from a low of 163.16 and has reached a high of 163.62 in Asia, recouping the losses overnight that came about with the pound sliding due to speculation growing that the Bank of England may not hike interest rates any further. Bank of England Governor Andrew Bailey on Wednesday raised the prospect that the central bank might not need to raise interest rates again, after hiking them to 4% from just 0.1% in December 2021.

This leaves the focus on the trendline support on a daily basis and questions as to how long it can hold out for:

GBP/JPY daily chart

Zooming down to the nearer-term charts, the price is coiled:

The resistance is being pressured but there are prospects of a correction as follows:

Should the 15-min support holds up, a fuller test of the trendline could result in a breakout from a 50% mean reversion of the bullish impulse as illustrated above.