HomeContributorsTechnical AnalysisGBP/JPY Technical Analysis: Struggles To Amplify Buoyancy Above 50.0% Fibonacci

GBP/JPY Technical Analysis: Struggles To Amplify Buoyancy Above 50.0% Fibonacci

GBPJPY in recent sessions found some footing a tad below the 50.0% Fibonacci retracement of the up leg from 149.04 until 156.06 but the positive traction off the 152.32 level has yet to gain speed. The dipping simple moving averages (SMAs) are contesting positive developments in the pair.

That said, the converged Ichimoku lines and the short-term oscillators are endorsing upside momentum. The Ichimoku lines are currently flat, reflecting weak negative pressures, while the technical indicators are conveying an increase in price’s bullish mood. Presently in bearish territory, the MACD is turning up and the RSI is improving from the 30 levels, together with signaling that buyers are countering dampening forces. In the oversold zone, the stochastic %K line has overlapped the %D line but has yet to confirm a bullish demeanor in the price.

If buyers are able to sustain the push above the 50.0% Fibo of 152.55, initial upside limitations may emanate from a zone between the red Tenkan-sen line at 153.18 and the 38.2% Fibo of 153.40. Breaching the 50-period SMA and recouping more of yesterday’s plunge could guide the price to test the resistance zone of 153.75-154.00. Moreover, conquering yesterday’s intraday high of 154.06 may then encourage buyers to challenge the durable boundary of 154.21-154.52, which has curbed improvements over the last week.

If sellers retake the wheel, immediate support could arise from the 50.0% Fibo of 152.55 and the nearby low of 152.32. If the pair remains heavy, the next barrier to the downside is the 61.8% Fibo at 151.72. Subsequently, for negative pressures to rule, sellers would need to break down the foundation formed between the 151.30 trough and the lows around the end of April and beginning of May.

Concluding, GBPJPY is exhibiting a somewhat neutral-to-bearish tilt. Yet, only a close below 150.86 could accelerate the downfall. However, a break above the minor downtrend line, pulled from the multi-year peak of 156.06, could boost a bullish bias.

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