GBPJPY has been trading within an ascending movement
over the last two months, with a higher high around the upper band of the long-term trading range of 148.90-158.20. Yesterday, the pair reached a fresh three-and-a-half-month high near 158.05 but today, it is returning some gains.
Regarding the technical indicators, the RSI is pointing marginally south around the overbought region; however, the MACD oscillator is stretching its positive movement above its trigger and zero lines. Moreover, the 20- and 40-day simple moving averages (SMAs) were ready for bearish cross, though, they currently are ticking higher again.
If the bulls continue to buy the pair and surpass the significant 158.20 resistance, they could change the neutral outlook to bullish, meeting the 160.20 barrier, achieved in June 2016. Running higher, the next stop could come from the 162.80 level, taken from the high in April 2016.
In the negative scenario, a drop lower, immediate support could come from the short-term SMAs at 155.20, which stand slightly above the uptrend line near 154.90 ahead of the 200-day SMA to 153.40. Even lower, the short-term bullish bias would turn to bearish, hitting 152.90 and then the 148.90-149.50 support zone.
In brief, in the long-term window, the sideways move would change if there is a direction above 158.20 or below 148.90. In the near-term, the view is positive and only a drop below the 200-day SMA may switch this picture to neutral.
