• GBP/JPY has continued to rise steadily since the beginning of April after bouncing at the 20-day EMA.
• GBP/JPY Price Analysis: It is neutral-upwards, but downside risks remain below 166.00.

The GBP/JPY is extending its gains to six-consecutive days of gains as the Asian session begins. However, amid a risk-on sentiment, buyers and sellers appeared to be at equilibrium, as shown by Wednesday's price action. As the Asian session begins, the GBP/JPY trades at 166.14, increasing by a minuscule 0.02% gain.

GBP/JPY Price Action

The GBP/JPY remained sideways once it reached a new YTD high of 166.60. The formation of a doji in the daily chart means that neither buyers/sellers remain committed to opening new long/short positions. Nevertheless, the GBP/JPY bias remains intact, tilted upwards. But for a bullish continuation, GBP buyers need to crack the December 20 high at 167.01, posing a threat to test the 168.00 figure.

On the other hand, if GBP/JPY dives beneath 166.00, it would exacerbate a pullback, initially testing the 165.00 mark. Once broken, downside risk remains at the 20-day Exponential Moving Average (EMA), at 163.88, followed by the 163.00 figure.

Oscillator-wise, the Relative Strength Index (RSI), albeit in bullish territory, turned flat, suggesting the pair shifted neutral. On the opposite side, the Rate of Change (RoC), portrays that buying pressure is fading. Therefore, the bias remains neutral upwards, but downside risks remain.

GBP/JPY Daily Chart

GBP/JPY Technical Levels