• GBP/JPY picks up bids following the bounce off monthly support.
• Sustained trading above 200-SMA, upbeat Momentum strengthen bullish bias.
• Bears await a clear break of 153.55 for fresh entry.

GBP/JPY extends Tuesday’s U-turn from a short-term key support line to 155.00 amid a sluggish Asian session on Wednesday. The cross-currency pair pulled back from a downward sloping trend line from May 27 before marking the latest recovery moves.

Given the pair’s successful trading above 200-SMA and upbeat Momentum, not to forget the ability to stay beyond a multi-day-old support line, GBP/JPY is up for another fight with the 155.35 resistance line.

However, a clear break of the same will need to cross May’s top of 156.07 to aim for the year 2018 high surrounding 156.65.

Meanwhile, a downside break of the stated support line, around 154.65, may bounce off the 200-SMA level near 154.15.

Even if the quote drops below 154.15, the 154.00 threshold and lows marked during May 10-11 close to 153.60-55 could test GBP/JPY bears.

GBP/JPY FOUR-HOUR CHART