GBPJPY’s overall appreciation appears somewhat ranging lately between 140.32 and 142.25, although the pair is still emitting a bullish tone as the price hikes the cloud’s upper band after a rebound off of the 140.32 barrier. At the moment the Ichimoku lines are not giving any clear directional signals, while all advancing simple moving averages (SMAs) are sponsoring a dictating bullish bearing.
The short-term oscillators are also suggesting positive momentum is improving. The MACD, not too far above its red trigger line, has pushed slightly above its zero threshold while the RSI is climbing in bullish territory.
If the pair follows the current trajectory, upside developments could hit a wall initially at the resistance ceiling of 142.13-142.25. If buyers manage to surpass this border, which contains the four-and-a-half month high of 142.25, the price may shoot to test the key 142.70 peak from September 2020. In the event buying interest persists, the bulls could target the critical peak of 143.71, identified back in February 2020, where the strong plummet in the pair unfolded.
On the flipside, if sellers retake the reins and steer the price down, immediate support may occur at the cloud’s upper surface at 141.58 ahead of the 50-period SMA around 141.34. Weakening further, the pair could then meet next downside friction at the bottom of the cloud at 140.87 and at the adjacent 100-period SMA at 140.81. Deteriorating further, the bears could then challenge the critical 140.32 boundary.
Summarizing, GBPJPY’s short-term picture remains generally bullish. Yet, the next price direction could be revealed with a break either above 142.25 or below 140.32.
