• GBP/JPY picks up bids to extend the previous day’s rebound from two-week low.
• Bearish MACD signals, failures to cross 21-DMA favor sellers.
• 50-DMA, lows marked in April, March act as additional downside filters.

GBP/JPY bulls poke intraday high surrounding 161.30, stretching Friday’s recovery moves, as Tokyo opens for Monday.

In doing so, the yen cross keeps the previous day’s U-turn from an upward sloping support line from March 30.

However, bearish MACD signals and multiple failures to cross the 21-DMA in the last two weeks keep sellers hopeful.

In addition to the 21-DMA level of 163.58, March’s high of 164.64 will also challenge GBP/JPY bulls before directing them to the last month’s peak surrounding 168.45.

Alternatively, pullback moves may initially aim for the aforementioned support line surrounding 160.40.

Following that, the 50-DMA level near the 160.00 threshold will be crucial to watch for the GBP/JPY sellers as a clear downside break of which will direct the pair towards lows marked in April and March, respectively around 159.60 and 159.00.

Overall, the GBP/JPY pair’s recovery moves seem less convincing until staying below the 21-DMA.

GBP/JPY: Daily chart

Trend: Recovery expected