Technical Analysis – GBPJPY hovers near new 40-month highs

GBPJPY had a strong green day on Thursday, charting a fresh 40-month high at 156.06. The price is currently holding above the bullish crossover within the 20- and 40-period simple moving averages (SMAs) as well as above the Ichimoku cloud. The MACD is stretching above its trigger line in the positive region, while the stochastic is entering the overbought zone.

More advances could take the market until the nearby resistance of 156.50, achieved in January 2018. Steeper increases could open the door for the 162.80 barrier, registered in April 2016.

On the other hand, a potential downside correction could test the 20-day SMA, which stands near the 153.40 support, ahead of the 152.45 line. Underneath these obstacles and the Ichimoku cloud, the bears could drive until the 23.6% Fibonacci retracement level of the up leg from 123.95 to 156.06 at 148.45.

Summarizing, GBPJPY has been in an ascending tendency in the short- and long-term timeframes since March 2020. Any decreases below the 200-day SMA at 143.60 would shift the outlook to bearish. 

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