GBPJPY has leaped above the crucial barrier of 142.70 after posting gains for more than a month. The positive price action to an eleven-month high, just beneath the 143.71 barrier, is still being nourished by the bullish Ichimoku lines, while the simple moving averages (SMAs) are preserving the progressing picture.
The short-term oscillators are also adding credence to the upside. The MACD, in the positive region, is tiptoeing above its flattening red trigger line, while the rising RSI is approaching the 70 level. Furthermore, the stochastic lines retain a positive charge in the overbought territory, promoting price improvements.
If the pair follows the current trajectory, resistance may originate from the nearby 143.71 boundary. Extending clearly over this, the sturdy climb in price could challenge the vital peak of 144.94 from back in February 2020. Successfully treading above this heavy hurdle too, the bulls could gain significant belief to hike towards the 147.95 peak.
On the flipside, if sellers steer the pair back below the border of 142.70, early downside friction could develop at the red Tenkan-sen line at 142.07 before the 141.27 obstacle. Diving from here, the blue Kijun-sen line at 140.87 and the neighbouring 50-day SMA at 140.24 could bear their brawn ahead of the 139.46 trough. Should the correction pick up pace, the cloud and the 100-day SMA at 138.28 may attempt to dismiss further negative tendencies from unfolding.
Summarizing, GBPJPY’s outlook remains optimistic above the SMAs and as long as the bulls defend the 142.70 and 141.27 barriers. The pair would need to shift below the 200-day SMA around 137.00 to undermine the bullish bearing.
