GBPJPY Tiptoes On 200-MA, Suppresses Downside Correction

GBPJPY’s positive structure remains intact as the pair’s pullback from the 35½-month high of 153.40 found a foothold on the 200-period simple moving average (SMA) around 150.64. The 50- and 100-period SMAs have been broken to the downside and their positive bearing has waned slightly.

The downward slope in the red Tenkan-sen line is feeding negative momentum, while the flattening blue Kijun-sen line is indicating some fading in the bearish impetus. Furthermore, the short-term oscillators are conveying conflicting signals in directional sentiment. The MACD’s dive below its red trigger line in the bearish zone has weakened slightly. Contrary, the RSI has ricocheted off the 30 levels and the stochastic oscillator is backing the pair’s recent bounce off the Ichimoku cloud’s lower band.

If sellers manage to steer the price clearly beneath the reinforced barrier of 150.56, the pair may then meet the 150.11 troughs before testing the inside swing high of 149.43 from March 24.

In order to provide the necessary traction for buyers to return above the 100-period SMA at 151.38, the critical support zone of 150.56-151.20 would be required to remain steadfast. Piloting higher, the heavy limiting region of 151.93-152.25 could prove difficult to surpass. However, should further gains unfold the 152.69 obstacle and the multi-year high of 153.40 may hinder the price from challenging the 153.62-153.84 resistance band.

Summarizing, GBPJPY’s bullish structure remains sturdy as long as the price persists above the 200-period SMA and the 150.56 lower boundaries. A shift below 148.51 could trigger serious negative pressures in the pair.

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