• GBP/JPY pares intraday gains as short-term moving average tests buyers.
• Downbeat MACD signals, the previous day’s bearish candlestick also tease sellers.
• Bears need validation from 50% Fibonacci retracement level to retake controls.

GBP/JPY retreats from the intraday high while consolidating the daily gains around 163.45 during Monday’s Asian session.

In doing so, the cross-currency pair justifies the previous day’s Doji candlestick, as well as bearish MACD signals, by taking a U-turn from the 21-DMA.

Other than the 21-DMA hurdle of 163.60, a horizontal area comprising multiple levels marked since late March also challenges the GBP/JPY buyers around 164.65-75.

Should the quote rise past-164.75, the odds of witnessing a run-up towards April’s peak of 168.43 can’t be ruled out.

On the flip side, the 160.00 threshold may entertain GBP/JPY bears ahead of directing them to the 50% Fibonacci retracement (Fibo.) of March-April upside, near 159.65.

It’s worth noting, however, that a daily closing below 159.65 will need validation from March’s low surrounding 159.00 before highlighting the 61.8% Fibo level of 157.59 for the pair sellers.

To sum up, GBP/JPY buyers seem exhausted but the bears have a long way before retaking the control.

GBP/JPY: Daily chart

Trend: Pullback expected