GBPJPY has been in an uptrend since rising from the June 12 low of 138.65. The pair hit a high of 147.60, nearing a one-month high. The May 10 high of 148.09 is in sight as the next target.
The RSI is approaching overbought levels on the 4-hour chart which suggests that GBPJPY may consolidate or pullback in the near term.
The 20-period moving average, currently located at 146.53, could act as a potential support level for any downside moves. Below this, important support comes into view at 146.00. This level has been tested several times in the past week and is considered to be a strong support mark. If it fails to hold, prices could fall towards another key level at 145.00. A drop from here opens the way towards support at 144.20 (June 27 high) and 143.25 (June 28 low). A deeper decline would change the current uptrend and the bias would turn bearish.
Alternatively, if GBPJPY regains upside momentum, a break of 147.60 could accelerate a move higher and strengthen the uptrend with scope to reach the May 10 high of 148.09 and from here the 150 handle would be targeted. The short-term outlook remains bullish as long as the market is trading above the moving averages.
