GBPJPY is advancing above the 20-period simple moving average (SMA) in the 4-hour chart, moving towards the significant 136.62 resistance level. The technical indicators are endorsing the recent upside run, with the MACD gaining ground above its trigger line and the RSI pointing north.
An extension above the 136.62 key level could meet the area between the 23.6% Fibonacci retracement level of the down leg from 142.70 to 136.38 at 137.10 ahead of the 40-period SMA at 137.53. Further up, resistance could run towards the 38.2% Fibonacci of 138.18 and the 138.34 barrier. Additional increases could then touch the 50.0% Fibonacci of 139.10, which overlaps with the 100-period SMA.
On the other hand, if the pair weakens, the red Tenkan-sen line, which hovers around the 20-period SMA, could provide immediate support at 135.90 before the spotlight shifts to the 136.38 trough reached on September 15. Below the latter, the 134.00 handle could attract a greater attention as any leg lower would worsen market’s bearish outlook.
To summarize, GBPUSD is looking bearish in the short-term, while in the long-term the picture is still bullish.