Technical Analysis – GBPJPY slices through 50-day SMA as decline resumes
The momentum indicators are endorsing this bearish near-term bias. Specifically, the RSI is sloping downwards below its 50-neutral mark, while the MACD histogram dropped below both zero and its red signal line.
Should selling pressures persist, the March low of 158.54 could act as the first line of defense. Sliding beneath that floor, the pair could decline towards 156.72, or lower to test the 2023 bottom of 155.34. Even lower, the 152.53 barrier might provide downside protection.
On the flipside, if the negative momentum fades and the price reverses upwards, the pair could challenge the recent resistance of 163.32, which overlaps with the 200-day SMA. Should that barricade fail, the bulls could aim for 164.20 before the 2023 peak of 166.00 appears on the radar. A break above the latter may pave the way for the September high of 167.50.
In brief, GBPJPY retraced lower and traded sideways between the 50- and 200-day SMAs after its recent advance got rejected. However, this rangebound pattern broke to the downside and a potential fresh lower low could lead to an acceleration of the retreat.
Related Assets
Latest News
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.
