GBPJPY is lacking direction in the very short-term timeframe as it has been consolidating above the 38.2% Fibonacci of the down leg 144.95-124.00 at 132.00 and the 135.80 resistance over the last month.
It is noteworthy that the 20- and 40-day simple moving averages (SMAs) are turning lower after their bullish crossover in the previous sessions, suggesting a possible downside movement again. The MACD and the RSI indicators are heading sideways with weak momentum near their neutral levels, failing to suggest any strong movement on price. Also, the Bollinger band is squeezing, confirming the recent neutral bias.
If there is a successful decline beneath the 38.2% Fibonacci of 132.00, which overlaps with the lower Bollinger band it would open the door for the 23.6% Fibonacci mark of 128.92 before touching the three-and-a-half-year low of 124.00 achieved on March 18.
Alternatively, an ascending move above the SMAs could find immediate resistance at the 50.0% Fibonacci of 134.48 ahead of the upper Bollinger band and the 135.80 barrier. Further increases could see the 61.8% Fibonacci of 136.90, which holds slightly below the 137.20 line before meeting the 100-day SMA at 138.70.
Summarizing, GBPJPY has been developing within a tight Bollinger band and the 132.00-135.80 region over the last month and investors could wait for any potential break either to the upside or downside of this zone.
