GBPJPY has nudged above the 200-period simple moving average (SMA) around 150.93; however positive momentum appears to be frail and currently incapable of lifting the price much higher. No definitive price direction is being conveyed through the SMAs, yet the 50-period SMA is ready to positively overstep the 100-period SMA, adding some credence to bullish price action.
Nonetheless, the pair remains within the confines of a short-term trading range between 149.04 and 151.93-152.27, while the technical oscillators are indicating that positive sentiment is fighting to regain the upper hand. The MACD, some distance above zero, is strengthening above its red trigger line, while the RSI is trying to regain its positive trajectory with a bounce off the ascending line. Countering the current price picture is the stochastic oscillator, which has become bearish and is promoting a negative pullback in the pair.
If buyers propel off the 200-period SMA at 150.93, initial resistance could come from the nearby upper Bollinger band at 151.55, before the bulls challenge the roof of 151.93-152.27 of the sideways market. Successfully overcoming this could fuel fresh buying interest, reeling in the 152.69 barrier before the bulls navigate towards the 35½-month high of 153.40.
Otherwise, if sellers dive below the 200-period SMA at 150.93, a tough cluster of support could develop from the 100-period SMA at 150.52 until the mid-Bollinger band at 150.29. Sinking past these obstacles, the 149.62 low could draw traders’ attention ahead of the floor of the consolidation at 149.04.
Summarizing, GBPJPY is exhibiting a neutral-to-bullish bias as the price is holding above the 200-period SMA. A break either above 152.27 or below 149.04 could see a clear price direction start to evolve. Furthermore, the broader bullish bias may be questioned if the price were to shift below the 148.51-148.70 boundary.
