GBPJPY failed to post more gains above the fresh 11-month high of 145.00 that it posted earlier this week and is moving sideways within a narrow range of 144.05 – 145.00 in the 4-hour chart. Currently, the price is developing around the red Tenkan-sen line suggesting a possible bearish retracement, while it still stands above the 20- and 40-simple moving averages (SMAs).
Technically, the stochastic oscillator continues to improve above the oversold zone and is posting a bullish cross within the %K and %D lines, while the RSI indicator is flattening in the positive territory, confirming the recent neutral bias.
Should the market head north again and surpasses the 145.00 strong psychological level,the 146.00 handle would be closely watched, taken from the high on November 22, as there is not any significant area before this level.
On the flipside, the 144.05 support has been halting downside pressure this week and if bearish pressures resume, the 143.25 barrier, which coincides with the 40-SMA, could come into focus. If the bears drive the price even lower it would be interesting to see whether the pair could cross below the bottom of the Ichimoku cloud and the 23.6% Fibonacci retracement level of the upleg 132.50 to 145.00, around 142.05.
Overall, in the short-term picture, GBPJPY is looking bullish and should remain positive as long as the market holds above the 2-year low of 132.50.
