GBPJPY is currently paring some of Thursday’s losses but the last couple of hours it has been trading with weak momentum. Meanwhile, the price has been struggling below the 20- and 40-period simple moving averages in the short-term timeframe, which are near the 149.40 resistance level.
From the technical point of view, the market could increase positive momentum in the short-term. In the 4-hour chart, the MACD oscillator is moving slightly to the upside above its trigger line, while the stochastic oscillator is approaching the overbought area.
Upside moves above the 149.50 significant barrier are likely to find resistance at near the 151.00 psychological level, but the price needs to surpass the 23.6% Fibonacci retracement level of 149.90 of the down-leg with the high of156.60 and the low of 147.90. Rising above this area would shift the focus to the upside towards the 38.2% Fibonacci mark of 151.20.
If price action remains negative, the next level to have in mind is the 148.50 support level. A slip below the aforementioned level could open the door to the key barrier of 148.00.
