GBPJPY Marks Yet More Lower Highs as Bearish Forces Linger

Technical analysis of Forex market

GBPJPY is struggling to gain positive traction amid successive lower highs. Moreover the 50-period simple moving average (SMA) has crossed below the 200-period SMA, increasing fears of a sustained bearish outlook.

Short-term momentum indicators are reflecting a mixed picture for the pair, as the RSI is hovering slightly above its 50 neutral mark. However, the MACD is negligibly below its red signal line and is looking ready to cross beneath zero which would be another sign of negative momentum.

Should the bears remain in charge, initial support might be found at the 50-period SMA currently located at 153.60. A break below this barrier, could pave the way towards an area which is comprised by the 153.33 and 153.10 level. A further descending movement below this point could strengthen the pair’s negative momentum, sending the price to test the congested region which encapsulates the 152.51 and 152.34 support.

On the flip side, should the price cross the 154.20 level, the bulls might then target the resistance region which consists of the 154.70 barrier and the 200-period SMA currently found at 154.90. Advancing beyond this point could turn the cards around for the pair, sending the price towards the 156.25 resistance level.

In brief, the overall outlook of the GBPJPY is negative. For that to change, the bulls would need to break above the 200-period SMA.