GBPJPY has bounced off the 151.10 support level, posting couple of sessions of gains after the significant selling interest from the 152.84 resistance.
The price is extending its move with a spike above the 38.2% Fibonacci of the up leg from 149.18 to 152.84 at 151.43 and the technical indicators are confirming the recent upside movement. The RSI is pointing upwards in the negative territory, while the %K and %D lines of the stochastic oscillator posted a bullish crossover in the oversold zone, suggesting the end of the bearish price action.
A continuation of the positive move could find immediate resistance at the 200-period simple moving averages (SMAs) at 151.70 ahead of the 151.90-151.97 zone, which encapsulates the 23.6% Fibonacci and the 40-period SMA. Stretching further, the bulls may next haunt the 152.84 high ahead of steeper increases towards 153.30-153.45.
In the event of a drop back below 151.43 may take the market until the 151.10 barrier and the 151.00 psychological mark which is the 50.0% Fibonacci. Failure to bounce on the latter, could bring the 61.8% Fibonacci of 150.57 into view.
In the bigger picture, the market continues to print higher highs and higher lows, holding the positive outlook intact despite the latest sharp dive.
