GBP/JPY Price Analysis: Buyers prepare an assault for a resistance trendline ahead of 165.00

• The GBP/JPY daily chart tests a three-month-old resistance trendline at around 164.70-90.
• The Relative Strength Index (RSI) and the Rate of Change (RoC) shifted bullish, indicating an upward trend for GBP/JPY.
• GBP/JPY Price Analysis: Downside risks remain below 164.00.

The GBP/JPY pair is gaining 0.53% on Thursday and is trading at 164.29 after hitting a daily low of 162.96. The pair's uptrend is attributed to the market's current risk-on sentiment and expectations that central banks will pause hiking rates after the recent banking turmoil in the US and Switzerland.

GBP/JPY Price action

The GBP/JPY daily chart suggests the pair is testing a three-month-old resistance trendline that passes at around 164.70-90, trading at 4-week highs. The Relative Strength Index (RSI) shifted bullish, suggesting the GBP/JPY outlook is upwards. The Rate of Change (RoC) jumped from a neutral stance after the GBP/JPY snapped three days of consecutive losses, erased on Thursday.

If the GBP/JPY continues its uptrend, the next resistance would be the February 27 high at 166.00. A breach of the latter will expose the December 19 daily high at 167.01, followed by the December 12 high at 169.27.

On the other hand, the GBP/JPY first support would be the psychological level at 164.00. Downside risks lie at the next support area at the 20-day Exponential Moving Average (EMA) at 161.87, ahead of testing the 50-day EMA at 161.18.

GBP/JPY Daily chart

GBP/JPY Technical levels