GBPJPY’s positive drive has become feeble after its two-week rally stretched to the 156.71 level, just shy of the 157.00 handle. The climbing 50-period simple moving average (SMA) and its near bullish crossover of the ascending longer-term 200-period SMA suggests the short-term rally may endure a while longer.
Currently, the Ichimoku lines are implying that upside forces are taking a breather, while the short-term oscillators are hinting of minor drawbacks in positive momentum. The MACD, in the positive region, is dipping marginally above its red signal line, while the RSI is struggling to keep a positive bearing ahead of the 70 level. The negatively charged stochastic oscillator is mirroring the pair’s preference to perform a minor pullback.
In the positive scenario, the immediate 156.71-157.00 resistance band may deter the rally from developing further. However, if additional advances unfold, the pair could then target the 157.45 barrier prior to challenging the adjacent 157.65-158.20 resistance section, which has been shaped by the multiple peaks stretching back to mid-October 2021. Triumphing over this barricade whose upper frontier is the more than five-year high, the price may then propel for the 159.00 hurdle.
Otherwise, if the price continues to run on fumes, the Ichimoku lines from 156.20 until 155.86, which surround the 156.00 mark, could act as an initial support area. Retreating further, the price may then meet the Ichimoku cloud’s upper band ahead of a tough section of support from the 200-period SMA at 155.51 until the 155.00 level. If selling interest persists, the near-term neutral-to-bullish picture may become vulnerable with the bears aiming for a test of the 154.43 low before sinking to the 153.80-154.00 support border.
Summarizing, GBPJPY’s neutral-to-bullish bearing is being questioned as upside pressures seem to be weak, currently lacking the ability to overstep the 156.71-157.00 impeding obstacle. That said, for negative tendencies to gain the upper hand, the price would need to glide beneath the 155.00-155.51 support zone.
