GBPJPY is paring some of Friday’s gains as over the last hours it is moving below its intraday high around 150.00. The price reached a new two-week high and is creating a bullish correction after the rebound on the 147.00 psychological level.
In the 4-hour chart, the technical indicators are pointing to a neutral to positive bias with the RSI just below the 70 level, while the MACD oscillator is flattening above its trigger line.
In case of further losses, the price could challenge the immediate support of 149.30. A drop below this region should see the May 6 trough of 148.20 acting as a major support barrier. Further downside pressures would reinforce the bearish structure in the medium-term and open the way towards the next key support level of 147.60, taken from the low on May 11.
In the event of a continuation of the upside reversal, a successful surpass above the 150.00 hurdle could drive the pair until the 150.60 resistance barrier. Also, above this critical level, the pair could open the ways towards the 152.70 peak, identified by the April 26 peak.
Overall, GBPJPY has been trading well above the 20- and 40-simple moving averages (SMAs) in the near term, signaling that the bullish correction is still in play.
