GBP/JPY Price Analysis: Trades near weekly highs around 151.50 on the back of a hawkish BoE

• On Thursday, the GBP/JPY reached a new four-day high at 151.48.
• Market sentiment is mixed, and it could weigh on the British pound.
• The daily chart shows that the GBP/JPY might consolidate before resuming its uptrend.

The GBP/JPY is steadily trading at 151.39, barely down 0.01% as the Asian session kicks in. On Thursday, the cross-currency dipped to a daily low of 149.53, but as the European session began and the Bank of England released its monetary policy statement, the cross-currency soared above 151.00 for the first time in four days.

The market sentiment is a mixed bag. In the US, the Dow Jones and the S&P 500 closed with gains of 1.48% and 1.21%, respectively. Meanwhile, the Asian equity futures are splitting between winners and losers. The Hang-Seng and the S&P/ASX 200 Futures are rising 1.42% and 1.08%, each. On the other hand, the Nikkei 225 and Topix Futures are falling 0.01% and 0.07%, respectively.

GBP/JPY Technical Analysis

Daily chart

The GBP/JPY is trading near the 50-day moving average (DMA) at 151.50. Around that level, a descending trendline coupled with the 50-DMA will act as resistance. A decisive break of the latter could push the price higher. The following supply zone would be 152.00. A breach of that level could expose the confluence of the 200-DMA and the September 14 high at 152.85. The next hurdle on the way up for the GBP/JPY would be July’s 13 high at 153.48.

On the flip side, the bears would need to reclaim 150.00, near the 200-DMA lying around 149.87. 

The Relative Strength Index, which is a momentum indicator, is at 51, almost flat. It could be a signal of exhaustion due to the recent spike in the GBP/JPY. The price might consolidate, awaiting for fresh impetus to resume its uptrend.

KEY TECHNICAL LEVELS TO WATCH