Ella 
In early European trading on Monday, GBP/JPY rose for the second consecutive day, setting a new intraday high around 184.70. The cross extended the previous day’s rebound from multiple horizontal areas since early August, while concerns about the Bank of Japan and the Bank of England were mixed.
Although the Bank of England Deputy Governor Ben Broadbent said at the Jackson Hole annual meeting that due to wage pressures, further interest rate hikes are needed. His economic outlook appeared to challenge hawks and central bank bulls.
On the other hand, Kazuo Ueda, Governor of the Bank of Japan, said that Japan’s inflation rate is slightly below the inflation target and will defend the current ultra-loose monetary policy.
In addition, the MACD signal is bullish and the RSI is up but not overbought, which also supports the upward trend of GBP/JPY.
In this regard, the cross is expected to test the 50SMA resistance at 185.15. However, the round number of 185.00 may limit its short-term upside.
Once above 185.15, the yearly high of 186.80 recorded in August will be in focus.
Conversely, a break below the former resistance line at 183.90 from August 22 could drag GBP/JPY towards the aforementioned horizontal support, near 183.30.
After that, the 200SMA at 182.70 will act as the last line of defense for the bulls.
