GBPJPY shifted out of its neutral phase and has turned more bullish in the short term to regain the 151 handle. Looking at the 4-hour chart, the pair appears to have put in a base after falling to its lowest level in around 3 weeks.
The pair is strengthening after making an aggressive move higher to breach what was a firm resistance level at 151 and the rally may have legs to move higher towards the next key level at 152. RSI is rising and has reached the 50 level, although it hasn’t broken it yet.
Minor support is expected at 150.50 and below this, the focus turns to 150 ahead of a re-test of the mid-December low of 149.40, with additional weakness seen from here.
Unless GBPJPY reaches into the 152 handle soon, then upside momentum may fade fast and the recent recovery would be seen as merely a corrective move of the downtrend from January 8 and not a shift in trend. A breach of 153 resistance is needed to bring GBPJPY back to a bullish market structure.
