GBPJPY has been fading its strong upside tendency over the last 4-hour sessions, trading below the new 26-month high of 147.55.
The momentum indicators now suggest that the market sentiment might get worse before getting better, as the RSI is reversing back to the downside in the overbought zone. The MACD is moving sideways above its trigger line.
In case of a downside correction, immediate support could come from the red Tenkan-sen line currently at 146.93, before slipping to the 146.30 barrier, which coincides with the 20-period simple moving average (SMA). Beneath these lines, the 40-day SMA currently at 145.25 and the 23.6% Fibonacci of 136.90-147.30 at 144.90 could come in focus.
In the positive scenario, where the price continues to levitate above the multi-month high, a new top could be formed around the 147.95 hurdle, registered in December 2019. If the market manages to overcome that area, traders could look for resistance at the 149.90 level, taken from the peak in September 2018.
All in all, in the medium-term, GBPJPY is moving upwards, though any declines/tumbles beneath the 200-period SMA may shift this bias to neutral.
