GBPJPY continues to trade in a narrow range and is expected to maintain a consolidation phase around the 151 level in the near-term. The uptrend that took place from the 140 area ran out of steam at 152.85 on September 21.
Trend indicators are neutral and showing a lack of clear direction on the 4-hour chart. RSI and MACD are flat, while the 20 and 50-period moving averages are horizontal.
GBPJPY is expected to trade sideways between 150 and 152.85 in the near term. A rise above the September 27 high of 151.60 would turn the focus to 152.85. Clearing this top would see a resumption of the medium-term uptrend with scope to target the next peak at 160.12.
The market is currently located inside the Ichimoku cloud and this does not bode well for the GBPJPY pair. Immediate risk is tilted to the downside unless prices rise back above the cloud. If key support at 150 is broken, then there would be increased pressure for a move lower towards further support at 148.35 and 146.65. More weakness would open the way towards the key 143 level.
GBPJPY is expected to remain neutral in the short term with risk building up for a move to the downside as the 20-period MA remains below the 50-period MA. The broader one-month uptrend from August 24 will likely change if prices fail to hold above the key 150-level.
