GBPJPY has been trending downwards after recording a fresh seven-year high of 172.10 in early November. In the short-term, the pair is trading without a clear direction, with its latest attempt for recovery being repeatedly held down by the 161.79 ceiling.
The momentum indicators currently suggest that bullish forces are waning. Specifically, the stochastic oscillator is descending after posting a bearish cross near the overbought zone, while the RSI appears ready to exit the 50-neutral territory to the downside.
Should the negative momentum strengthen, the pair could descend to test its recent support of 159.49. If that floor collapses, the spotlight could shift to the 158.58 barrier before the 2023 bottom of 155.34 curbs further declines. A break below the latter could pave the way for the March low of 151.00.
To the upside, bullish actions might initially propel the price above the recent resistance of 161.67. Surpassing that zone, the pair could challenge the 162.33 hurdle before the inside swing low of 163.04 comes under examination. Failing to halt there, the July resistance of 166.31 may prove to be the next obstacle for the bulls to overcome.
In brief, GBPJPY has been moving sideways in the past few daily sessions, appearing unable to adopt a clear directional impetus. Nevertheless, a profound break above or below its recent range could trigger a decisive move towards the same direction.