GBPJPY is attempting to push north of the high of 163.57 from the 5 May, coincidently where the upper Bollinger band is currently located. The pair is maintaining its bullish demeanour, forming its eighth daily consecutive green candle, after the price unearthed significant upside pressure from around the 158.00 region, where the 100-day simple moving average (SMA) formed a defence. The upward creeping SMAs are suggesting that the positive trend is intact.
Presently, the short-term oscillators are skewed to the upside. The MACD is strengthening over its zero and red trigger lines, while the RSI is improving in the bullish zone. Meanwhile, the stochastic lines have flatlined in the overbought territory, reflecting no abating in positive impetus however hinting of a modest pause in upside price action.
In the positive scenario, immediate resistance is being applied at the 163.57 mark by the May 5 high and from the upper Bollinger band. Nudging higher, the pair could meet the nearby 164.29 deterrent, which is the 23.6% Fibonacci retracement of the up leg from 150.96 until 168.42, while additional appreciation in the price may then challenge the 166.07-168.55 resistance section. Should this obstruction that formed over the end of January until mid-February 2016 period, which curbed advances in April, fail this time to dismiss gains in the price, the early February high of 170.62 could then come into play.
Otherwise, if the pair fades from the upper Bollinger band, an initial support zone from the 162.26 inside swing high until the 38.2% Fibo of 161.76 may provide buyers with a foothold. However, in the event selling pressures overwhelm, the next downside limitations could show face at the 161.00 handle and the mid-Bollinger band at 160.37 ahead of the 50.0% Fibo of 159.69. Surrendering extra ground, the bears may then confront the 100-day SMA at 158.63 and the 158.00 hurdle before aiming for the lower Bollinger band at 156.90.
Summarizing, GBPJPY’s broader bullish structure remains intact above the 147.39-149.04 support foundations. That said, a dive breaking the 154.91-155.45 support border could trigger worries about downward pressures. Yet, for the bullish picture to bolster, the price would need to pilot above the multi-year high extending beyond the 168.55 mark. If the price ebbs beneath the mid-Bollinger band, favourable odds for either direction return to the table.
