GBPJPY appears to have stalled its bearish trajectory ahead of the 132.93 border from July 1. The pause in the pair’s descent is also reflected in the short-term oscillators and the easing of the slopes of the negatively charged Ichimoku lines.
The technical indicators are skewed to the downside despite displaying a slight improvement in momentum. The MACD, far below zero, has pushed above its red trigger line, while the RSI is pointing upwards after a bounce on the 30 mark. Nonetheless, traders need to keep in mind the prevailing bearish bearing of the simple moving averages (SMAs).
If selling interest picks up, early support may develop from the three-month lows and the 132.93 barrier. Diving underneath this, the support section of 131.62 to 131.93 may challenge the decline. If steeper losses unfold, the price may then see the 130.66 boundary before sinking towards the 129.28 trough of May 18.
Alternatively, if buyers manage to steer clearly over the red Tenkan-sen line at 133.65, resistance may stem from the 134.55 obstacle, coupled with the blue Kijun-sen line. Another run up may encounter constraints from the 50-period SMA, around the 135.32 high. Persistent buyers could then tackle the Ichimoku cloud and the 136.14 hurdle, before a resistance band of 136.57 to 136.73. A sustained climb over this resistance trench could then battle the 100-period SMA at 137.47 prior to aiming for the 138.24 mark.
In brief, GBPJPY maintains its short-term bearish bias below the SMAs, cloud and the 134.55 barrier. Yet, while a break below 132.93 may strengthen this negative outlook, a break above 136.73 would undermine it.