GBPJPY is showing signs of weakness after falling below its 50-day moving average but the 2-month neutral trend remains intact. The market continues to consolidate in a range between 147 and 152 after pausing an uptrend at a high of 152.85 on September 21.
RSI has fallen back below 50 into bearish territory, suggesting there is room for further downside in prices in the near-term. Strong support is expected at the bottom of the range at 147. Breaking lower would place the market into a previous range – 140-147 – that took place between April and September.
As long as the price remains above the 200-day MA at 144.14, the overall outlook leans to positive. Prices need to rise back above the 50-day MA (149.50 area) to improve upside momentum and increase the odds for a move to the upper range at 152 and to re-test the 152.85 peak. This level was last seen in June 2016 and may be quite a challenge to break. If successful, then GBPJPY would be back in an uptrend.
In the bigger picture, GBPJPY has traded above its 200-day MA since September 8, keeping the bullish outlook in place.
