GBPJPY Improves After Bounce Around Familiar Floor

Technical analysis of Forex market

GBPJPY, although having nudged over the 50-day simple moving average (SMA) at 151.85, has yet to overstep the Ichimoku cloud’s upper surface, residing between the 50-and 100-day SMAs. The 100- and 200-day SMAs are backing a positive picture, while the 50-day SMA is endorsing a phase of consolidation along with the unclear Ichimoku lines.

That said, the short-term oscillators are suggesting that bullish momentum is ahead. The strengthening MACD has neared its zero mark after pushing above its red trigger line, while the RSI is improving in bullish territory. The stochastic oscillator is maintaining a positive charge around the overbought region promoting bullish price action in the pair.

If the pair steers above the Ichimoku cloud, early resistance could commence from the 100-day SMA at 152.71 ahead of the resistance belt of 153.30-154.06. Should buyers manage to clear this ceiling relating to the recent consolidation – the price may then target the 155.14 high from around the end of June. If upside momentum persists, the resistance section between the 156.00 handle and the rally peak of February 2018 at 156.60 could come into focus.

Otherwise, if sellers drive the price below 151.85, next support could arise around 150.96, which happens to be the 23.6% Fibonacci retracement of the up leg from 134.39 until 156.06. Additional weakness may direct the pair back to the vicinity of the support base of 148.51-149.41, where the pair previously found its footing. However, if this foundation breaks down, which encapsulates the 200-day-SMA, the next obstacle to conquer could be the nearby 147.39-148.10 border.

Summarizing, GBPJPY is sustaining a positive bearing in a sideways pattern between 148.51 and 153.30. A break above 154.06 or below 148.51 could set a clear price path.