GBPJPY has been in a downward tendency over the last four months, recording a new six-month low of 135.15 in the previous days. However, the technical indicators are suggesting a potential upside movement as the %K line of the stochastic is ready to complete a bullish cross with its %D line in the oversold territory and the MACD is accelerating its positive momentum below the zero line.

If there is a successful downside penetration of the 135.15 key level, the price would flirt with the two-year low near 132.50, registered on January 3.

On the flipside, upside movements could find immediate resistance at the 20-day simple moving average (SMA) located near 136.60. More advances could lead the pair until the 40-day SMA, which coincides with the 137.80 barrier, before touching the 23.6% Fibonacci retracement level of the downfall from 148.86 to 135.15 near 138.40.

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Summarizing, GBPJPY is still negative in the medium-term and traders should be waiting for a daily close below the 135.15 support for more losses. However, a climb above the short-term moving averages may switch the bias to neutral.

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