GBP/JPY Price Analysis: Rises to test critical area at 156.00

• Pound outperforms on Wednesday ahead of Bank of England announcement on Thursday.
• Yen under pressure amid higher US yields.
• GBP/JPY above the 20-SMA in 4-hour charts fails at 156.00.

The GBP/JPY gained momentum on Wednesday on the back of a stronger pound and a weak Japanese yen. The cross broke above 155.50 and jumped reaching at 155.90, a two-day high.

The rally lost momentum near 156.00 and the pound pulled back modestly. The intraday bias is still positive. GBP/HJPY is trading around two key levels: the 156.00 resistance and the 20-SMA in four-hour charts. If it manages to rise clear above 1256.00, the outlook would look brighter for the pound. The next resistance stands at 156.40.

If GBP/JPY is unable to regain 156.00 it will keep the cross in a bearish channel. A close below 155.00 should expose the weekly low at 154.62. Below the next support stands at 154.40.

GBP/JPY 4-hour chart