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GBPJPY Sellers Struggle to Amplify Price Pullback

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Technical analysis of Forex market

GBPJPY is currently finding its feet around a support barrier shaped between the 156.00 handle and the highs reached in late May and early June. Even though the 100- and 200-period simple moving averages (SMAs) are defending the positive structure, the price dip beneath the 50-period SMA is implying some waning in positive drive.

Currently, the Ichimoku lines are not clear of a price direction, while the short-term oscillators are conveying conflicting signals in momentum. The MACD is slightly beneath its red trigger and zero lines, while the RSI is heading lower in the bearish territory. Alternatively, the stochastic oscillator is promoting bullish impetus as the %K line has turned up in oversold territory and above its %D line.

If sellers manage to dip beneath the 155.74-156.00 barricade and the Ichimoku cloud’s lower band, the bears could then aim for the 100-period SMA at 155.19 and the 154.94 barrier slightly beneath. A price drop past these obstructions may feed negative forces, which could steer the price towards the 153.26-153.47 key border, shaped between the highs reached in July and the first part of August. From here, looming below is the 200-period SMA at 153.08 and the 152.56-152.84 support band, which are reinforcing upside defences that sellers will inevitably have to breach to gain command.

If buyers regain traction off the 155.74-156.00 zone or cloud’s floor, initial resistance could stem from the Ichimoku lines around 156.77 and the 50-period SMA at 157.10. Moving above the cloud, buyers may then meet a resistance section, formed by the recent high of 157.75 and the near 64-month peak of 158.20. Conquering the more than 5-year high, the price could encounter the 159.00 handle before propelling for the 160.09-160.65 border, moulded between the peaks reached in June.

Summarizing, GBPJPY is sustaining a neutral-to-bullish bias above the longer-term averages. While a drop below 155.00 could reinforce a correction, a price jump above the cloud may feed upside momentum.