GBPJPY has been trading in a range during the past two weeks and is pivoting around the 20 and 50-period moving averages which are converging around the 148.50 level. This also happens to be the 38.2% Fibonacci retracement of the recent rally from 141.34 to 152.85.

Support is expected at the 50% Fibonacci at 147.11. This level has been tested a few weeks ago and was rejected, resulting in the market consolidating just above it. To the upside, the key 150 level and 23.6% Fibonacci will provide resistance, which if broken would see another push higher to re-test the 152.85 peak before the resumption of the August to September uptrend.

A drop below the 50% Fibonacci at 147.11 would turn the focus to the downside to target 145.74. Another leg lower would open the way towards key levels at 144 and 140.

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The lack of direction in trend and momentum indicators highlight the neutral feel in the near term. Aside from the horizontal moving averages, the RSI and MACD on the 4-hour chart are flat. Clearer signals are needed to determine where the market will go from here.


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