GBPJPY has advanced by nearly half a percent in today’s trading so far, eyeing Friday’s one-month high of 147.60.
The short-term momentum as depicted by the RSI is bullish. Specifically, the indicator is well above its 50 neutral-perceived level and currently maintains a positive slope. Notice though that at 69, it is close to the 70 overbought level.
If the price keeps advancing, resistance could be met around Friday’s high of 147.60. Further up, a potential psychological level, namely the 148.00 handle, combined with the seven-month high of 148.10 from May 10, might form an additional barrier to the upside.
Should the price decline, the area around the 146.00 handle, which is another potential psychological level that was of significance in the recent past, could provide support. Further declines would shift the focus to the area around the current level of the 50-day moving average (MA) at 143.96 for additional support.
Regarding the medium-term outlook, the pair recorded a bullish cross in January. This is a positive medium-term signal whose strength is supported by the price being above the 50- and 200-day MAs, as well as by both MAs currently being upward sloping. The divergence between the price and the two MAs could be a sign of an overextended rally though.
Overall, both the short- and medium-term are currently bullish.
