GBPJPY is retreating for the fourth consecutive red day, following the pullback from the 167.50 resistance level. Currently, the market is neutral in the medium-term, as it failed several times to post a higher high above the more-than-six-year peak of 168.65.
The pair is approaching the recent bullish crossover within the 20- and 50-day simple moving averages (SMAs) that is suggests more gains in the short-term. However, the technical oscillators show contradicting signals. The RSI is pointing downwards in the positive area, while the MACD is ready to fall beneath its trigger line above the zero level.
If the pair breaks the 163.90 support level as well as the short-term SMAs, then the next target could come from the 200-day SMA, which overlaps with the 160.00 psychological mark. More downside pressures may change the neutral outlook to bearish, meeting the 157.80 and the 155.55 support levels.
On the flipside, a bounce off the bullish cross of the SMAs may drive the market higher, towards the 167.50 resistance and the multi-year high of 168.65. Even higher, the market will endorse a long-term bullish bias, resting near the 175.00 handle, taken from inside swing low in April 2015.
In the broader picture, the market is awaiting a climb above the 168.65 barrier for brighten the bullish outlook. Only a decline beneath the 200-day SMA may switch the view to bearish.
