GBPJPY has reversed back up again after finding support at the 143.20 support level, achieved on Tuesday. Today, the pair reached a new 10-day high, continuing the sharp buying interest that started yesterday. Technical indicators seem to be strongly positive. The RSI stands in the overbought zone, while the MACD is strengthening its momentum above the trigger and zero lines.
The next resistance would come from the 147.60 – 147.80 zone if the price creates a closing candle above the 61.8% Fibonacci retracement level of the downleg from 149.70 to 142.75, near 147.00. A successful leg above the aforementioned region would open the way towards the 148.40 resistance, taken from the highs on October 16.
If there’s a failure of upside movements the market would return lower and hit the 50.0% Fibonacci of 146.20. If the bears take charge and pull the pair below it, the 38.2.0% Fibonacci of 145.40 would be next level for investors to have in mind.
Overall, GBPJPY holds above the 20- and 40-simple moving averages (SMAs) in the 4-hour chart confirming the scenario for short term upside tendency.
