GBPJPY Sellers Unable To Effectively Contest Ascent

Technical analysis of Forex market

GBPJPY is edging across the 153.39 level, which happens to be the previous high. The price is obeying this border as negative pressures lack the backing to gain an advantage. That said the advancing simple moving averages (SMAs) are endorsing the positive picture, while the Ichimoku lines are demonstrating that the bullish drive is intact.

Nonetheless, the short-term oscillators are conveying mixed signals in directional momentum. The MACD, beyond the zero mark, is holding above its red trigger line, while the RSI, which deflected off the 70 level, is falling towards a trend line. The stochastic oscillator is suggesting positive impetus is starting to wane and is promoting a price pullback.

If buyers form some traction off the 153.39 level, initial upside constraints could develop with a revisit to the 39-month high of 154.42 ahead of the 155.41 barrier, that being the 150.0% Fibonacci extension of the down leg from 144.94 until 124.00. Overcoming these obstacles, the resistance zone from the 156.00 handle until the February 2018 peak of 156.60 could challenge bullish sentiment. Surpassing this buffer zone too may then encourage buyers to target the 161.8% Fibo of 157.89.

Otherwise, sellers could face preliminary downside friction from the Ichimoku lines at 152.76 and 151.80 respectively, ahead of the 50-day SMA at 151.30. Diving into the Ichimoku cloud may then produce a stronger price retracement aimed at the key 148.51-149.04 support base. Surrendering extra ground from here may power negative pressures, while failure by the neighbouring buffer zone of 147.39-148.10 to oppose a deeper decline, could prove significant to undermine the positive structure.

Concluding, GBPJPY’s uptrend remains intact above the 151.30 low, the 50-day SMA and the Ichimoku cloud. However, its soundness could be thrown into question, should a correction extend beneath the boundary of 147.39-148.10.