GBP/JPY Price Analysis: Looks to extend gains beyond 155.00

• GBP/JPY makes a stellar recovery from the previous week's lower levels.
• Bulls remain hopeful above the 154.95 level, look for additional gains.
• Momentum oscillator moves in favor of upside momentum.

GBP/JPY price edges higher on Thursday morning in the initial trading session. The cross made YTD high at 156.07 in May and continued to drift lower since then. After testing the low of 151.32 price again rose to the 155.00 mark on Wednesday.

At the time of writing, GBP/JPY is trading at 154.99, up 0.08% for the day.

GBP/JPY daily chart

On the daily chart, the GBP/JPY cross has been in the continuous downside momentum since the beginning of the month. The pair remained under selling pressure after making a YTD high of 156.07 on May 27.

Price is comfortably placed above the 20-day Simple Moving Average (SMA) at 154.78, which strengthens the upside momentum for the pair.

In doing so, GBP/JPY would test the first resistance at the high of June 16 at 155.38.

The Moving Average Convergence Divergence (MACD) indicator reading above the midline, which signifies the impending higher price movement. Any uptick in the MACD would ignite a fresh round of buying opportunities.

Market participants would then look out for June 4 high at 155.76 followed by the high of May 31 in the vicinity of the 155.95 area.

Alternatively, if price makes a sustained move below the intraday low at 154.87, then it could inch toward the previous day’s low at 154.16. The cross would then be encouraged to retest the 153.65 horizontal support level.

Next, GBP/JPY bears would attempt to capture the 153.20 horizontal support level.

GBP/JPY additional levels