GBPJPY continued advancing today after closing higher for three days in a row. Today’s movement has led the pair to record a near one-week high of 142.22.
The RSI is close to the 50 neutral level but it has risen considerably in recent days in order to reach its current level at 51. The indicator’s movement, which is also upward sloping at the moment, is hinting to a bullish momentum in place for the pair. The stochastics are painting a similar picture. Specifically, the %K line has steeply risen in recent days and is in bullish territory. Moreover, it has crossed above the slow %D line.
The near three-week high of 142.52 form June 20 could act as a barrier to up movements in price. Further up, a resistance area might be formed by the current level of the 50-day moving average (MA) and the 38.2% Fibonacci retracement level of the April 17 to May 10 upleg, ranging from 143.04 and 143.31.
On the downside, the 50% Fibonacci at 141.82, which was exceeded today as the price was moving higher, could instead act as an intra-day support level. Below this level, the 141.00 handle could serve as psychological support, while further down, the 61.8% Fibonacci mark at 140.35 could provide additional support.
Turning to the medium-term picture, it is currently neutral with the price ranging since the start of the year and currently being in between the 50- and 200-day MAs.
To sum up, the short-term bias looks bullish and the medium-term is neutral.
