GBPJPY was stuck in an uptrend since the beginning of the year and generated a new seven-year high of 172.31 last Tuesday. Although the recent completion of a golden cross between the 50-day simple moving average (SMA) and the 200-day SMA induced bullish pressures, the pair experienced a downside correction.
The short-term oscillators currently suggest that bullish forces are waning but remain in control. Specifically, the RSI has flatlined above its 50-neutral mark despite its recent drop, while the MACD histogram is softening above both zero and its red signal line.
Should selling interest persist, the previous resistance of 167.96 could now act as immediate support. Dipping beneath this region, the pair could decline towards 166.83 before the 164.20 hurdle gets tested. Further retreats might then cease at the April support of 162.76.
On the flipside, if the price reverses higher again, the December 2022 peak of 169.26 could be the first barrier for the bulls to conquer. An upside violation of that zone could pave the way for the seven-year high of 172.31. Slicing through that barricade, the pair could ascend towards levels not seen in years, where the March-May 2014 resistance of 173.45 could curb any upside attempts.
In brief, GBPJPY experienced a pullback after its 2023 advance peaked at a fresh seven-year high of 172.31. However, the price retains its bullish structure and only a break below the 200-day SMA could shift the outlook to bearish.