GBP/JPY Price Analysis: Bounces off 154.80 support confluence

• GBP/JPY consolidates the heaviest losses in a month.
• Confluence of 10-day SMA, early May’s top restrict immediate downside.
• Multiple support lines from late April, early May add to the downside filters.

GBP/JPY picks up bids to 155.00 as bears catch a breather during Wednesday’s Asian session. The quote dropped the most since April 30 the previous day but is recently bouncing off a 10-day SMA and May 18 top convergence.

Other than the stated support confluence near 154.80, ascending trend line from May 07 and April 23, around 154.60, also offer strong support amid the upbeat Momentum line.

As a result, the cross-currency pair is ready to battle the weekly top surrounding 156.00 but any further upside can be capped by the last month’s peak near 156.10.

Meanwhile, a downside break of 154.60 could quickly drag the GBP/JPY prices back to a three-week-old horizontal area surrounding 153.50.

It’s worth noting that the pair’s run-up past 156.10 will be challenged by the year 2018 high of 156.61 whereas an extended downside below 153.50 should aim for the late April top near 152.40.

GBP/JPY daily chart

Trend: Bullish