GBPJPY regained some ground after the BoE decision and the losses it caused yesterday, but found resistance at the 20-day simple moving average (SMA). The price plunged beneath the 38.2% Fibonacci retracement level of the upward wave from 150.95 to 168.40 at 161.70 and the 40-day SMA in the daily chart.
The RSI is showing some positive signs below the neutral threshold of 50, while the MACD oscillator is heading south below its trigger line, reducing chances for a meaningful recovery in the short-term.
However, should the price close comfortably above the 38.2% Fibonacci of 161.70 traders could add more positive momentum to the pair, pushing the market up to the 20-day SMA at 163.70. The 23.6% Fibonacci of 164.24 has been strictly a strong resistance for the bulls. More advances could open the way towards the more-than-six-year high of 168.40.
In the negative scenario, the market could retest the 50.0% Fibonacci of 159.70 and the 159.50 support level. Even lower, investors could shift attention to the 61.8% Fibonacci of 157.64 and the 200-day SMA, which holds near the 155.24 barrier.
In brief, GBPJPY is in a bearish mode in the very short-term timeframe and bullish in the bigger picture.
