GBPJPY is ticking up after the bullish gap on Monday and the bounce off the 23.6% Fibonacci retracement level of the upward wave from 134.37 to 140.70 at 139.20, which overlaps with the 100-period simple moving average (SMA) in the 4-hour chart.
According to the technical indicators, the MACD is advancing above the trigger and zero lines, while the RSI indicator is sloping north in the bullish territory.
Immediate resistance could come from the upper Bollinger band around the 140.000 psychological level before jumping to the 140.33 barrier. Slightly above this line, the three-month high of 140.70 could come next.
Alternatively, if sellers take the upper hand and drive the market beneath the 23.6% Fibonacci, support could be faced at the 40- and then at the 20-period SMAs at 138.90 and 138.60 respectively. Diving below these lines, the price could reach the 38.2% Fibonacci of 138.28 and the 137.88 barrier.
Concluding, GBPJPY has been in a bullish mode and any declines below the SMAs may change this view to neutral.
