Technical Analysis – GBPJPY storms to fresh 3-month high
April 14, 2023 7:26 am
GBPJPY has been edging higher in the short term, posting a fresh three-month high of 167.50 on Thursday. Moreover, the ascending 50-day simple moving average (SMA) is positively closing the gap with the 200-day SMA, where a potential golden cross may help the pair extend its advance.
The momentum indicators are endorsing a bullish near-term bias. Specifically, the RSI has flatlined above its 50-neutral mark, while the MACD histogram is strengthening above both zero and its red signal line. However, the pair is currently trading near its upper Bollinger band, hinting that this recent rally might have reached overbought conditions.
If buying pressures persist, the bulls could initially attempt to propel the price above the recent three-month high of 166.83. Surpassing that zone, the pair could ascend towards the September peak of 167.50 or higher to challenge the December resistance zone of 169.26. A violation of the latter might open the door for the seven-year high of 172.10.
On the flipside, if the positive momentum fades and the price reverses lower, the 164.20 region, which previously served as resistance, could now act as support. Should that floor collapse, the price could test the April support of 162.76 before the March bottom of 158.25 appears on the radar. Further declines could then cease at the 156.72 hurdle.
In brief, GBPJPY has been exhibiting some strength lately, jumping to its highest levels since December 2022. Moving forward, the pair is likely to adopt a sideways pattern until the completion of a golden cross between its SMAs enables it to move even higher.
GBPJPY has been edging higher in the short term, posting a fresh three-month high of 167.50 on Thursday. Moreover, the ascending 50-day simple moving average (SMA) is positively closing the gap with the 200-day SMA, where a potential golden cross may help the pair extend its advance.
The momentum indicators are endorsing a bullish near-term bias. Specifically, the RSI has flatlined above its 50-neutral mark, while the MACD histogram is strengthening above both zero and its red signal line. However, the pair is currently trading near its upper Bollinger band, hinting that this recent rally might have reached overbought conditions.
If buying pressures persist, the bulls could initially attempt to propel the price above the recent three-month high of 166.83. Surpassing that zone, the pair could ascend towards the September peak of 167.50 or higher to challenge the December resistance zone of 169.26. A violation of the latter might open the door for the seven-year high of 172.10.
On the flipside, if the positive momentum fades and the price reverses lower, the 164.20 region, which previously served as resistance, could now act as support. Should that floor collapse, the price could test the April support of 162.76 before the March bottom of 158.25 appears on the radar. Further declines could then cease at the 156.72 hurdle.
In brief, GBPJPY has been exhibiting some strength lately, jumping to its highest levels since December 2022. Moving forward, the pair is likely to adopt a sideways pattern until the completion of a golden cross between its SMAs enables it to move even higher.
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