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GBPJPY Holds Bullish Hopes as Advances Deteriorate

GBPJPY retreated aggressively from a freshly logged high of 140.43 under the mid-Bollinger band, hitting the 50-period simple moving average (SMA) at 139.11. Nonetheless, safeguarding positive sentiment are the advancing simple moving averages (SMAs).

The short-term oscillators are reflecting a rise in negative momentum. The dwindling MACD has slid below its red trigger line in the positive region, while the weakening RSI has dipped beneath the 50 level.

In the current negative scenario, sellers may face immediate reinforced support from the zone beginning at the 50-period SMA at 139.11 until the 100-period SMA at 138.71, which is surrounding another limiting band of 138.79-138.94. Successfully diving underneath this, the price may then challenge the region of 138.11-138.26, containing a key trough and the lower Bollinger band. Steeper declines may then target the 137.59 low, while the adjacent 200-period SMA at 137.47 and the neighbouring 137.18 critical bottom may attempt to provide tough defences for the positive structure.

Alternatively, if buyers re-emerge and manage to decisively drive the pair over the mid-Bollinger band at 139.23, they may thrust the price as high as the upper Bollinger band in the vicinity of the resistance zone of 140.28-140.43. Triumphing above this border may stretch the climb until the 141.17 and 141.42 highs from early September. Should the bulls persist, the pair may then be directed towards the 141.94 high ahead of the 6-month peak of 142.70.

Summarizing, the short-term positive structure remains defended above the 100-period SMA at 138.71 and the 138.26 trough. A profound retracement below these levels may undermine it, while a rally above 140.43 may repower it.