- GBPJPY remains above the rising trend line
- But technical oscillators are losing steam as well
GBPJPY has been posting some flat days over the last four sessions, holding near the short-term uptrend line. The market is developing near the 191.00 round number with the technical oscillators confirming the weakening momentum. The RSI is moving horizontally above the neutral threshold of 50, while the MACD is holding beneath its trigger line above zero level.
If the market rebounds off the diagonal line, the next resistance is coming from the eight-and-a-half year high of 193.55. A potential higher high could drive the price towards the 161.8% Fibonacci extension level of the down leg from 188.65 to 178.80 at 194.80.
On the other hand, a successful decline could find immediate support near the 20-day simple moving average (SMA) and the 190.00 psychological mark. Slightly lower, the 50-day SMA at 189.45 may act as a turning point for the pair; however, even lower the 188.00 handle could switch the outlook to a more neutral one.
To sum up, GBPJPY is failing to extend the ascending tendency and a negative retracement cannot be ruled out.
