• GBP/JPY grinds higher after bouncing off the lowest levels in three weeks.
• Bullish candlestick, rebound from 100-DMA favor buyers amid steady RSI.
• 50-DMA guards immediate upside amid bearish MACD signals.

GBP/JPY defends the previous day’s rebound from the 100-DMA as it picks up bids around 162.15 during Thursday‘s Asian session. In doing so, the cross-currency pair also justifies the ‘Dragonfly Doji’ candlestick marked on Wednesday.

Given the RSI (14) favoring the recent rebound from a three-week low, backed by bullish candlestick formation and a U-turn from the 100-DMA, GBP/JPY is likely approaching the 50-DMA hurdle surrounding 162.80.

However, a convergence of the 21-DMA and a downward sloping resistance line from June 22, near 164.80, appears the key resistance level to watch.

Should the GBP/JPY prices rally beyond 164.80, the odds of witnessing a north-run towards the previous monthly peak of 168.73 can’t be ruled out.

On the contrary, pullback moves remain unimportant beyond the 100-DMA support level of 160.90.

Following that, an upward sloping trend line from early March, near 159.50, will be crucial to watch for the GBP/JPY bears.

In a case where the quote provides a daily closing below 159.50, a slump towards May’s low of 155.59 becomes imminent.

GBP/JPY: Daily chart

Trend: Limited upside expected