GBPJPY edged higher from the 155.30 support level but remains well below the bearish crossover within the 20- and the 200-day simple moving averages (SMAs). In the short term, the pair is bearish after the selling interest that started from the almost seven-year high of 172.10.
Technically, the RSI indicator is falling beneath the neutral threshold of 50; however, the MACD is trying to overcome its trigger line in the bearish region.
Should the price retreat, the 155.30 level, which the bears were unable to break this week, could provide immediate support. Moving lower, the focus will shift to the 152.60 barrier, while lower still, a violation of the 150.95 mark would increase speculation that the bearish phase is in progress.
In the alternative scenario, traders would eagerly be looking for a break above the 20-day SMA at 162.95 to increase buying orders. If that’s the case, the rally could last until the 200-day SMA near 164.00 ahead of the 50-day SMA at 165.33. If bullish forces appear even stronger, 169.25 should be another resistance to keep in mind.
Overall, GBPJPY is still in negative territory and only moves above the 200-day SMA and the 169.25 resistance may switch the outlook to positive.
