GBP/JPY: Bulls consolidate below 20-day SMA

• GBP/JPY remains subdued with mild gains on Monday.
• Cross is in uptrend since late April, looking for some corrective action.
• Momentum oscillator turns in favor of downside momentum.

The GBP/JPY price trades cautiously on the first trading day of the week in the Asian session. The cross-currency pair confides in a trading band of 154.60-154.90.

At the time of writing, GBP/JPY trades at 154.85, up 0.08% for the day.

On the daily chart, the GBP/JPY is in continuous upside trading momentum from the lows of 149.06. The bulls took support near the rising trendline at the session’s low. The pair made the YTD high on May 27 at 156.07 and continued to trade lower since then on some profit taking.

GBP/JPY daily chart

If GBP/JPY breaks the ascending trendline, then it could bring selling opportunities for the traders. The first target in the line would be the low of June 10 at 154.13 followed by the May 27 low at 153.84.

The negative divergence in the  Moving Average Convergence Divergence (MACD) indicator suggests impending bearish momentum in the pair. Any downtick in the MACD would intensify the selling pressure toward the 153.60 horizontal support level.

Alternatively, if price sustained above the intraday high, then it could continue with the prevailing trend and remain poised to touch the previous day high of 155.21. 

Next, GBP/JPY bulls would aim at the high of June 4 at 155.76 and further to retest June 1 in the vicinity of the 155.95 area.

GBP/JPY additional levels