GBPJPY is pushing efforts to close above the noisy 140.30 ceiling that kept the bulls under control the past six weeks.
The RSI and the MACD are endorsing the buying appetite in the market, though some caution is warranted as the former is approaching a restrictive trendline and the latter has yet to show a clear positive direction above its red signal line.
Should the bulls persist, the pair could retest the 141.85 resistance region before meeting the crucial trendline from March’s lows around September’s peak of 142.69. A step higher would resume the positive trajectory in the medium-term picture, shifting the spotlight towards the key 144.50 area and then up to the 145.60 barrier.
On the downside, there is a strong floor around the shorter ascending trendline and the 50-day simple moving average (SMA), which are currently slightly above the 50% Fibonacci retracement of the 142.69 – 133.00 down leg at 137.86. Breaching that border, the sell-off may sharpen towards the 38.2% Fibonacci of 136.72 and the 200-day SMA, while lower, the supportive 23.6% Fibonacci of 135.30 will also be closely watched.
Summarizing, GBPJPY is holding a positive bias, though a decisive close above 140.30 is required for the bulls to remain in play in the short term, while a steeper rally beyond 142.69 is what is needed to switch the neutral medium-term outlook to bullish.
