GBPJPY has calmed just below the 50-day simple moving average (SMA) after the price reversed from the 139.72 mark back under all SMAs, thus reverting the pair to the previous neutral structure.
Although the negative tone in the 50- and 100-day SMAs is intact, the sideways lingering in the former and the flattened state of 200-day SMA, reflect the stalled mode present in the pair. Glancing at the short-term oscillators, they presently suggest weak directional momentum but lean towards the negative picture. The MACD is under its red signal line and just below the zero threshold, while the RSI floats under its neutral mark. In the stochastic oscillator, the rising %K line is slowly failing and starting to turn down.
Providing the 50-day SMA continues to cap upside attempts, initial support could arise from the 131.75 low prior to the 130.66 barrier. If sellers take another dive under the 130.66 mark, the key trough at 129.28 may apply the brakes to the descent, otherwise steeper declines could then challenge the 127.32 essential obstacle.
Should buyers jump the price over the 50-day SMA at 133.25, resistance could originate from the 100-day SMA at the 134.47 barrier, which is the 50.0% Fibonacci retracement of the down leg from 144.94 to the multi-year low of 124.00. Climbing further, the pair may test the 136.33 high. Overtaking it, the price may encounter congested resistance from the 61.8% Fibo at 136.93 and the overhead 200-day SMA at 137.37 as it targets the 139.72 peak.
Summarizing, GBPJPY demonstrates a neutral-to-bearish tone in the short-term timeframe and a close either above 139.72 or below 129.28 would reveal an established direction.
