GBPJPY maintains a neutral bias in the short and medium term, supported at the key 150 level. The cross maintains a bullish market structure in the short term, while trading above the 50 and 200- period moving averages on the 4-hour chart.
GBPJPY made a strong recovery after a brief dip below 150 in mid-December to rise back to test the 152 level, which provided strong resistance. Prices are now trading sideways after upside momentum weakened, as can be seen by the RSI being neutral.
Downside is limited and near-term risk is tilted to the upside, with scope to re-test the 152 level. A decline to 150 support would be an opportunity to buy but a break below this level would shift the market out of the recent consolidation. Another leg lower towards 148 would change the bias to bearish.
For now, GBPJPY remains bid with additional gains possible at the upper end of the recent consolidation range. A sustained move above 152 would target 153 but only a break above this level would confirm a bullish move and shift the overall outlook to a more positive one.
