GBPJPY surged to a fresh 35-month high in yesterday’s session, hitting the 150.70 barrier. The aggressive buying interest started after the bounce off the 134.40 support and the advance above the 200-day simple moving average (SMA).
Technically, the MACD oscillator is moving horizontally around its trigger line in the positive region, suggesting an overbought market, however, the stochastic is approaching the 80 level, indicating that there is more ground for bullish moves in the near-term.
If buying pressure intensifies, immediate resistance could be faced from the multi-month peak of 150.70 before jumping towards the next psychological mark of 154.00, achieved in April 2018. Overcoming this hurdle too, the 156.50 barrier, reached in January 2018 could be the next target.
Otherwise, initial tough support could develop from the zone of the 20-day SMA currently at 147.40 and the 145.05 support, which encapsulates the 40-day SMA. Diving beneath this too, the 142.70 obstacle may also attempt to halt further loss of ground ahead of the 200-day SMA at 138.70.
In conclusion, GBPJPY has been in an upside tendency over the last five months and any decreases below the 142.70 support and the 200-day SMA could take the market lower towards a neutral mode.
