Technical Analysis – GBPJPY builds base around 23.6% Fibonacci mark and the short-term ascending trend line
March 23, 2018 10:26 am
GBPJPY has reversed back down again after finding resistance at the one-month high of 150.30 achieved this week. The price plunged below the 38.2% Fibonacci retracement level of the downleg from the February 2 high of 156.60 to the March 2 low of 145.00.
Meanwhile, the price is re-challenging the 23.6% Fibonacci mark around 147.70, which holds near the short-term ascending trend line. The diagonal line has been standing since February.
Momentum indicators are pointing to a neutral to negative bias in the short-term with the RSI indicator bottoming out within the 30 and 50 level and the MACD oscillator turning negative below the trigger line, suggesting that a bearish movement is nearing again.
In the wake of negative pressures, the market could meet support near the 147.00 handle. A successful close below this level could see a retest of the previous low of 146.25, while in case of steeper declines, the pair could breach this barrier, diving towards the 145.00 psychological obstacle.
On the flip side, a move on the upside could see immediate resistance at the 40 and 20 simple moving averages in the 4-hour chart near 148.50 and 149.00 respectively. A stronger barrier could be found at the 38.2% Fibonacci mark of 149.40 since any strong violation of this price level could increase chances for further gains probably towards the 150.30 resistance.
GBPJPY has reversed back down again after finding resistance at the one-month high of 150.30 achieved this week. The price plunged below the 38.2% Fibonacci retracement level of the downleg from the February 2 high of 156.60 to the March 2 low of 145.00.
Meanwhile, the price is re-challenging the 23.6% Fibonacci mark around 147.70, which holds near the short-term ascending trend line. The diagonal line has been standing since February.
Momentum indicators are pointing to a neutral to negative bias in the short-term with the RSI indicator bottoming out within the 30 and 50 level and the MACD oscillator turning negative below the trigger line, suggesting that a bearish movement is nearing again.
In the wake of negative pressures, the market could meet support near the 147.00 handle. A successful close below this level could see a retest of the previous low of 146.25, while in case of steeper declines, the pair could breach this barrier, diving towards the 145.00 psychological obstacle.
On the flip side, a move on the upside could see immediate resistance at the 40 and 20 simple moving averages in the 4-hour chart near 148.50 and 149.00 respectively. A stronger barrier could be found at the 38.2% Fibonacci mark of 149.40 since any strong violation of this price level could increase chances for further gains probably towards the 150.30 resistance.
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