GBPJPY holds a neutral bias in the near term after stalling its decline from 152.85 to 146.93. Short-term trend and momentum signals are highlighting the lack of direction in the market and point to a consolidation phase between the key levels of 147 and 149. On the 4-hour chart, RSI and MACD are flat, while the 20 and 50-period moving averages are horizontal.
Immediate support is expected at 146.65. The market is expected to remain well supported at this level but a break it would open the way towards 144 and then 140. To the upside, resistance is seen at 150. Another push higher would see a re-test of the 152.85 peak before the resumption of the August to September uptrend.
The neutral to bearish phase is expected to remain intact in the short term. Fibonacci analysis shows price action around the 38.2% retracement. While risk is to the downside, only a drop below the 50% retracement level at 146.17 would reverse the 139.30 – 152.85 uptrend.
