GBP/JPY Price Analysis: Upside meets six-month-old resistance near 154.50

• GBP/JPY edges higher following the previous session’s gain on Wednesday.
• Multiple resistance near 154.45 offers a strong barrier for the bulls.
• Momentum oscillator support bullish momentum.

The GBP/JPY cross trades higher with a cautious tone in the early European trading hour. The pair books the gains for the fifth straight session. At the time of writing, the GBP/JPY cross-currency pair is trading at 154.48, up 0.02% on 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 154.45 since late June. The current price action suggests difficulty for the GBP/JPY bulls near the strong resistance barrier around 154.50. Having said that, if the price breaks day’s high then it could test the psychological 155.00 as the first upside target.

Furthermore, the Moving Average Convergence Divergence (MACD) indicator holds the overbought zone. Any uptick in the MACD would bring the high of June 15  at 155.48 back into action followed by the 155.90 horizontal resistance level.

Alternatively, on the reverse side, the bears would meet the 153.68 horizontal support level and then moving onto Monday’s low at 152.74.  A daily close below the 100-day Simple Moving Average (SMA) at 152.48 could bring the next stoppage to the 151.90 horizontal support zone.

GBP/JPY additional levels