GBPJPY remains in a bullish phase but has stalled its recent rally after reaching its highest level since mid-June 2016.
On the 4-hour chart, the market became overbought and subsequently made a corrective move lower. This is indicated by the RSI reaching above 70 after GBPJPY surpassed the prior high of June 8 (153.70) and moved higher.
Immediate support is now at 153.70 and resistance at yesterday’s high of 154.57. The outlook remains bullish on the short and medium-term time frames. So losses are expected to be limited and strong support is seen at the key 153 level. A move below 152 would indicate an end to the short-term bullish phase.
As long as support at 153.70 holds in the near term, then the odds for another leg higher will likely increase, with scope for GBPJPY to rise to the next handle of 154 and from here, the next target will be the 160 level.