- GBPJPY meets former resistance after quick bounce
- Technical signals endorse a bullish breakout
GBPJPY pivoted swiftly near its 200-day simple moving average (SMA) and recovered a three-week-old soft downturn but despite that, it’s still struggling to exit the short-term range above the tough 50-day SMA at 183.90.
The technical indicators are feeding optimism that buying appetite could strengthen in the coming sessions. The RSI has crawled above its 50 neutral mark, while the MACD keeps deviating above its red signal line.
If the pair successfully pierces through the 50-day SMA and the 184.00 number, it could accelerate towards August’s peak of 186.45. The area between the 188.00 round level and November’s eight-year high of 188.65 could be the next destination on the way up. Should upside forces persist above the 2015 barrier of 188.80, the price might post a new higher high near the 192.00 mark. Interestingly, this is where the long-term resistance line from June 2021 is located.
In the event the 50-day SMA stands firm, the price might seek support near its 20-day SMA at 181.35. Failure to rebound there would shift the spotlight back to the 200-day SMA at 179.60. A break lower could immediately stabilize around the 178.35 floor, which has been limiting downside corrections over the past five months. If that collapses too, the sell-off might intensify towards the key 176.30 constraining zone.
Summing up, GBPJPY is holding a bullish bias near an important resistance area in the short-term picture. A close above 184.00 could trigger the next rally in the market.
