Technical Analysis – GBPJPY freezes pullback near 20-SMA; bullish trend present
- Christina Parthenidou
GBPJPY balanced the soft pullback off the long-term resistance line near the 20-day simple moving average (SMA) and around May’s hurdle of 154.80, maintaining the series of higher highs and higher lows in the long-term picture.
The technical signals are mixed as the MACD and the RSI continue to point downwards, whereas the fast-Stochastics are rotating northwards.
The 2018 peak of 156.59 will be the next target if buying pressures temper above the 20-day SMA, while beyond that, the door would open for the 160.00 – 163.85 region, last active during the first half of 2016.
In the event the 20-day SMA gives way to the downside, initial support could unfold around the 153.55 barrier, a break of which could push the price straight to the 50-day SMA and the lower restrictive line seen at 152.50. Another step lower could squeeze the price towards 150.85, though only a decisive close below 149.00 would officially damage the broad upward pattern.
Summarizing, GBPJPY keeps defending its positive trajectory despite the latest downfall. A rebound near 154.80 could stretch towards the 2018 top, further strengthening the positive outlook. Otherwise, a negative correction could expose the price to the lower supportive line.
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