GBPJPY in the last nine days has logged only one bearish doji candle and it seems set to push to new heights as upside pressures continue to overpower. It appears the pivot at 147.39 gained significant traction refuelling the rally and lifting the price to a 34½-month high of 152.22. The rising Ichimoku lines are assisting the 3-month rally from 136.77, while the advancing simple moving averages (SMAs) are endorsing the bullish structure.
The short-term oscillators are also reflecting the dictating bullish tone in the pair, suggesting further advances. The MACD is far above the zero threshold and has nudged back above its red trigger line, while the RSI is soaring in overbought territory. Furthermore, the rising stochastic lines, are also in the overbought region and are showing no signs of waning in price for the moment.
Following the current trajectory, the pair may encounter initial constraints at the 152.92 level, which happens to be the 138.2% Fibonacci retracement of the down leg from 144.94 to 124.00. Should buyers overrun this barrier, a nearby resistance band of 153.62-154.04 could attempt to calm the climb. However, if buying interest intensifies from here, the bulls may try to overthrow the 150.0% Fibo extension of 155.44 and challenge the vital resistance zone of 156.00-156.60.
Alternatively, if sellers retake the reins and steer the price down, support may originate from the red Tenkan-sen line at 150.19 and the 149.35 low slightly beneath. Retracing further, the key support section of 147.39-148.10 could be challenged ahead of the Ichimoku cloud.
Summarizing, GBPJPY is sustaining a strong bullish bias above the Ichimoku lines and the 147.39-148.10 critical support zone.
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