GBPJPY continues extending its remarkable recovery from its lowest since August 2017 of 139.88 hit in mid-August. The pair is currently trading around 900 pips above the previously mentioned nadir.
The positively-aligned Tenkan- and Kijun-sen lines are supporting the view for a bullish short-term bias.
An extension of the move up may meet resistance around last week’s four-month high of 149.70; a couple of peaks from previous months at 149.30 and 150.0 lie close to this point. Further above, the 76.4% Fibonacci retracement level of the downleg from 153.84 to 139.88 at 150.54 would be eyed.
On the downside and given a move below the 61.8% Fibonacci mark at 148.51, immediate support could occur around the Tenkan-sen at 147.98. Lower still, the focus would turn to the zone around the 50% Fibonacci level at 146.85.
The medium-term outlook has tilted to the upside, given that trading activity is now taking place above the 50- and 100-day moving average lines, as well as above the Ichimoku cloud. An additional sign attesting to this is the recording of a higher high on Friday, in contrast to the downtrend condition of lower highs and lower lows that was previously at play.
Overall, the short-term picture is bullish, while the medium-term one appears to have tilted in a positive direction.
