• GBPJPY picks up bids to reverse the previous day’s pullback form weekly top.
• Short-term resistance line, convergence of the key SMAs challenge buyers.
• MACD conditions suggest further hardships for buyers, 165.00 appears a tough nut to crack for the bears.

GBPJPY teases buyers around 168.00 heading into Wednesday’s London open, after snapping a two-day uptrend the previous day.

The cross-currency pair reversed from the convergence of the 50-SMA and 100-SMA on Tuesday before portraying the latest bounce off the 38.2% Fibonacci retracement of the pair’s October 11-31 upside.

It’s worth noting, however, that the receding bullish bias of the MACD challenges the upside bias.

That said, a one-week-old descending trend line, around 168.40 restricts the GBPJPY pair’s immediate upside ahead of the aforementioned SMA confluence near 168.70.

Should the quote manage to remain firmer past 168.70, the odds of witnessing a rally toward September’s high of 172.13 can’t be ruled out.

Alternatively, pullback moves may aim for the 38.2% and 50% Fibonacci retracement levels, respectively near 167.40 and 165.90.

However, the 200-SMA and multiple lows marked since October 14 highlight the 165.15-164.95 region as the key support for the bears to consider breaking before taking control.

Overall, GBPJPY is likely to witness a pullback but stays on the buyer’s radar unless breaking the 164.95 level.

GBPJPY: Four-hour chart

Trend: Pullback expected