- GBPJPY may start bearish correction
- Stochastics move down; RSI ticks up
GBPJPY suffered significant losses following an aggressive rally to the multi-year high of 208.10. The pair found immediate support at the 20-day simple moving average (SMA) of 203.80, keeping the bias bullish for now.
Technically, the stochastic oscillator is diving from the overbought region; however, the RSI is ticking up above the neutral threshold of 50.
If there are steeper declines, immediate support could come from the 201.60 barrier ahead of the 50-day SMA at 200.45, before battling with the long-term ascending trend line near 198.80.
On the other hand, a successful move above yesterday’s high could open the way for a test of the next round numbers of 209.00 and 210.00.
All in all, GBPJPY has had a strong upside tendency, and only a decline below the uptrend line and, more importantly, below the 200-day SMA could change the outlook to negative.
