GBPJPY has dipped below the 200-period simple moving average (SMA) at 148.82, and is putting strain on the three-month uptrend, which started in December – pushing off the level of 139.50. The defence of the bullish structure has been compromised, something also being conveyed by the slowing of the 100-period SMA’s incline and the downward directing 50-period SMA.
The diving Ichimoku lines are validating the pair’s aggressive negative sentiment, something also demonstrated in the short-term oscillators. The MACD, deep in the negative zone, is distancing itself below its red trigger line, while the RSI is descending further beneath the 30 level. The stochastic lines, which are plunging in oversold territory, are endorsing an extension of the retracement from the 34½-month high of 152.54.
If sellers preserve the current price trajectory and close below the 200-period SMA, preliminary downside constrictions may arise from the 148.10 low. Neighbouring this barrier, is the vital support section of 147.27-147.87, which could challenge sellers’ efforts to cement the negative outlook. Should the decline prevail though, the bears may then aim for another area of support from 146.61 until 146.31, which if broken as well may see the pair snowball from here.
If buyers steer the price above the 200-period SMA at 148.82, nearby resistance could come from the 149.07 obstacle. Stepping over this and recouping some previous losses, buyers may encounter some upside friction from the red Tenkan-sen line at 149.67 ahead of the resistance region of 149.94-150.21. Subsequently, a more profound increase in buying interest would be required to conquer the resistance zone from the blue Kijun-sen line at 150.50 until the 50-period SMA at 151.06.
Summarizing, a close below the 200-period SMA could confirm GBPJPY’s bearish tone, while a shift above the Ichimoku cloud is required to boost the positive picture.
