GBPJPY has dipped below the 50-day simple moving average (SMA) and into the Ichimoku cloud but is struggling to break below the 149.50 level, which happens to be the 23.6% Fibonacci retracement of the up leg from 136.95 until 153.40. The advancing SMAs are defending the uptrend, which kicked off on December 21 from 136.95.
The neutral Ichimoku lines are reflecting relatively weak price action after the pullback from the 35½-month high of 153.40, while the short-term oscillators are favouring the downside. The MACD, marginally below its red trigger line has slid underneath the zero threshold, whereas the RSI is improving in the bearish region. The negatively charged stochastic oscillator is headed for oversold territories, promoting additional dwindling in the pair.
If selling interest intensifies steering the pair beneath the 23.6% Fibo of 149.50, early downside constraints may evolve from the nearby 148.51 trough, before the support section of 147.39-148.10 challenges a deeper retracement. In the event this key boundary fails to apply the brakes, the price may then target the 146.40 barrier.
Otherwise, if buyers acquire footing off the 23.6% Fibo of 149.50, a cluster of resistance may emanate from the 50-day SMA at 150.35 until the blue Kijun-sen line at 151.02. Pushing past these obstacles, the 152.00 handle may then step into the spotlight. Should additional gains transpire, the bulls may then propel for the multi-year high of 153.40, and the adjacent resistance zone of 153.62-154.04 identified back in February-April 2018.
Summarizing, the pair’s short-term bullish picture becomes vulnerable should the price dip beneath the 147.39-148.10 boundary and the Ichimoku cloud.
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