GBPJPY is posting a bearish correction after the 11% gain and the rebound off the 26-month low of 148.80. Currently, the price is testing the 20- and 50-day simple moving averages (SMAs) and slightly lower the 200-day SMA is acting as significant support. The RSI is consolidating near the 50 level, while the MACD is standing near the zero level.
To the downside, immediate support could come from the 200-day SMA at 160.50 before diving towards the 152.60 barrier. The next hurdles could come at the 150.95 and the 26-month trough of 148.80.
Otherwise, if buyers push above the moving averages, initial resistance could come from the 165.70 barrier ahead of the 167.50 line. Climbing higher, the more-than-six-year high of 168.65 could interrupt the test of a key region of 175.00, reached in April 2015.
Summarizing, the very short-term bias has turned bearish but if the price shifts above the 165.70 mark, and especially beyond 168.65 the picture could turn positive.
