Technical Analysis – GBPJPY attempts to overcome 40-day SMA
- Melina Deltas
GBPJPY is challenging the 40-day simple moving average (SMA) and the 153.40 resistance, following the bounce off the 148.45 support level. A successful jump above 153.40 could take the market towards the 40-month peak of 156.06 before meeting the 156.50 barrier, reached in January 2018. Moving higher, the 162.80 line, taken from the inside swing high in April 2016 may halt the bullish actions.
According to the technical indicators, the MACD oscillator is gaining ground in the negative territory, jumping above its trigger line, while the RSI is extending its positive move above the neutral threshold of 50. However, the stochastic oscillator created a bearish crossover within the %K and %D lines above the 80 level, suggesting an overbought market.
In case the price retreats below the 20-day SMA, immediate support could come from the 23.6% Fibonacci retracement level of the upward move from 133.00 to 156.06 at 150.60 before pausing the decline at 148.45. Underneath these obstacles, the 200-day SMA, which overlaps with the 38.2% Fibonacci of 147.25 could be in the spotlight.In conclusion, GBPJPY is in a positive move in the near-term and in a declining tendency in the medium-term after the fall from 156.06.
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