GBPJPY Eyes Nearby Ceiling after Extending above MAs

Technical analysis of Forex market

GBPJPY is targeting the 156.77 barrier after maintaining a two-week climb from the 150.96 low, which also managed to overstep the simple moving averages (SMAs). For some time now, the SMAs have been lacking a distinct trend as the pair has mostly been trading between the 148.45 and 158.20 price limits.

The short-term oscillators are revealing a neutral-to-bullish price mood in the pair. The MACD, has deviated away from its red trigger line, which is in the negative zone, and has nudged into the positive region. The RSI is pointing higher in the bullish zone, while the stochastic lines are maintaining a positive charge in the overbought territory.

Preserving the current price trajectory, upside limitations could originate from the 156.77 and 157.28 highs, moulding a buffer zone, which also encapsulates the upper Bollinger band at 157.15. Nonetheless, adjacent to this is the 157.46-158.20 ceiling of a more than five-month range, which is further fortifying the barricade impeding additional advances in the pair. However, if buyers manage to overpower these obstacles, the price may then propel towards the June 2016 high of 160.09, where the pair previously collapsed considerably.

Alternatively, if bullish pressures start to fade, initial support could arise from the 154.98-155.45 support area, the former being the 50-day SMA. A deeper pullback in the pair may then confront support around the 153.96 level, where the 100-day SMA and the mid-Bollinger band are currently located. Should the price sink a little further, buyers could then attempt to find their feet within the 152.83-153.39 support band, which encompasses the 200-day SMA.

Summarizing, GBPJPY is exhibiting a bullish demeanour above the 155.45 low and the SMAs. For the negative bearing to regain the upper hand, the pair would need to sink beneath the 150.96 trough.