Technical Analysis – GBPJPY fails to overcome 153.40; neutral-to-bearish bias

GBPJPY attempted to break the upper border of the neutral zone it has been ranging within this week, but its efforts proved unsuccessful as the 153.40 barrier defended the bears once again.

The short-term oscillators are also in favor of the bears; the RSI is moving sideways near its 50 neutral mark and the stochastic oscillator is approaching the oversold territory after the bearish cross within the %K and %D lines.

Hence, the short-run risk is looking neutral-to-negative at the moment and another retest of 151.25 is possible. A fall below the latter could open the way for the 23.6% Fibonacci retracement level of the up leg from 129.30 to 156.06 at 149.75 ahead of the 148.45 support, which stands near the 200-day SMA.

To the upside, the 153.40 nearby resistance area may add some footing to the market, but a violation at this point may not attract much attention unless the price rallies above the 40-month high of 156.06 and the 156.50 barrier, registered in January 2018.

In brief, GBPJPY could trade neutral-to-negative in the short-term. A close below the 200-day SMA could bring fresh selling pressure in the market, while a jump above the 156.06 level could raise buying interest.

Latest News

Technical Analysis – EURGBP bearish bias enhanced by capping Ichimoku cloud

Technical Analysis – NZDUSD rebound loses steam, downside risks heighten

Technical Analysis – USDJPY struggles near 20-day SMA and marginally above 129.00

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.