GBP/JPY Price Analysis: Clings to gains above 157.00

• GBP/JPY remains firm on Tuesday in the initial European session.
• Bulls negate the previous day’s sluggish momentum.
• The momentum oscillator holds onto the overbought zone, throws caution for aggressive bids.

The GBP/JPY cross-currency pair edges higher on Tuesday. The pair remains pressured near 157.40.  At the time of writing, GBP/JPY is trading at 157.11, up 0.11% for the day.

GBP/JPY daily chart

On the daily chart, the GBP/JPY cross currency pair has been trading in a broad trading range of 149.00 and 154.00 for six months, before breaking the range on October 11. The pair peaked near a four-year high of 157.41 in a span of 5 days on Friday. 

If the price breaks above the intraday’s high it could again test the high of 157.41. The  Moving Average Convergence and Divergence (MACD) trades in the overbought zone. Any uptick in the MACD would bring the June 2016 high of 160.67 nearer to the GBP/JPY bulls.

Alternatively, on the reverse side of the trade, the downside target appears at 156.00 and the 155.00 horizontal support zone. Next, the GBP/JPY bears would seek Thursday’s low around 154.65.  

GBP/JPY additional levels