HomeContributorsTechnical AnalysisGBPJPY Freezes Pullback Near 20-SMA, Bullish Trend Present

GBPJPY Freezes Pullback Near 20-SMA, Bullish Trend Present

GBPJPY balanced the soft pullback off the long-term resistance line near the 20-day simple moving average (SMA) and around May’s hurdle of 154.80, maintaining the series of higher highs and higher lows in the long-term picture.

The technical signals are mixed as the MACD and the RSI continue to point downwards, whereas the fast-Stochastics are rotating northwards.

The 2018 peak of 156.59 will be the next target if buying pressures temper above the 20-day SMA, while beyond that, the door would open for the 160.00 – 163.85 region, last active during the first half of 2016.

In the event the 20-day SMA gives way to the downside, initial support could unfold around the 153.55 barrier, a break of which could push the price straight to the 50-day SMA and the lower restrictive line seen at 152.50. Another step lower could squeeze the price towards 150.85, though only a decisive close below 149.00 would officially damage the broad upward pattern.

Summarizing, GBPJPY keeps defending its positive trajectory despite the latest downfall. A rebound near 154.80 could stretch towards the 2018 top, further strengthening the positive outlook. Otherwise, a negative correction could expose the price to the lower supportive line.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading