Technical Analysis – GBPJPY unlocks fresh 26-month high around 145.00

Melina Deltas, XM Investment Research Desk

GBPJPY is edging higher after the bounce off the 144.10 support, recording a fresh 26-month high above 145.00. In trend indicators, the Ichimoku lines are pointing upwards, while the simple moving averages (SMAs) are following the price action. The RSI indicators is heading north towards the 70 level, while the MACD is ticking up in the positive area.

In case the buying interest intensifies, the next resistance could come at 147.95, taken from the peak on December 2019. However, the pair may pause its run at the 146.00 and 147.00 psychological levels.

On the other hand, a downside correction may send the price until the 20-period SMA at 144.60 ahead of 144.10, which overlaps with the 40-period SMA. Steeper declines could drive the market until the 23.6% Fibonacci retracement level of the up leg from 136.90 to 144.90 at 144.04, which holds near the 200-period SMA.

Summarizing, GBPJPY has been in an upside tendency since December and only a drop beneath the 200-period SMA may change this outlook.