GBPJPY is presently stuck between the 50- and 100-day simple moving averages and directional momentum appears to have become feeble. The 200-day SMA is backing the positive structure, while the 50- and 100-day SMAs are endorsing a more neutral trajectory in the pair.
The short-term oscillators are indicating a pickup in buying interest but the power behind the bullish impetus appears to be somewhat lacking. The MACD is above the red trigger line and is rising towards the zero line, while the RSI is fighting to improve further above the 50 level. The positive charge in the stochastic oscillator is promoting additional positive price action in the pair.
If upside forces start to strengthen, upside limitations could commence from the zone between the 50-day SMA at 153.23 and the 154.05 high. Overcoming this barrier, which encompasses the upper Bollinger band, the next resistance obstacle may develop at the 155.14 nearby high. Conquering this too may cheer buyers to challenge the resistance section of 156.00-156.60, the latter being the rally peak in February 2018 and the former the near 40-month high.
If selling interest intensifies, an initial support area between the immediate 100-day SMA at 152.58 and the mid-Bollinger band at 151.98 could form. If the price successfully dips beneath this zone, next support may transpire from the 150.96 barrier, which happens to be the 23.6% Fibonacci retracement of the up leg from 134.39 until 156.06. Next, if the lower Bollinger band at 150.07 fails to dismiss a deeper decline from evolving, the bears could then retest the support base of 148.51-149.41. In the event downward forces steer the pair below the 148.45 trough, a neighbouring support border of 147.39-148.10 could deny sellers the chance to gain the upper hand.
Summarizing, GBPJPY is exhibiting a neutral tone in the near-term. A break below the 200-day SMA could shift the bias to bearish, while a push above the 154.00 mark could fuel optimism in the pair.
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