Technical Analysis – GBPJPY challenges 24-week high above 140.00

Melina Deltas, XM Investment Research Desk

GBPJPY posted a noteworthy upside movement as it reached a fresh 24-week high of 140.19 on Thursday, surpassing the previous peak of 139.80. Also, the price is still developing above the five-month ascending trend line.

From a technical viewpoint, the RSI indicator jumped above the 70 level, entering the overbought region, while the stochastic oscillator is heading towards the 80 line after the bullish cross within the %K and %D lines. Both are suggesting a possible pullback in the short-term.

However, more upside movements could take the price towards the immediate 140.90 resistance before creating a steeper increase until the 144.95 barrier, taken from the peak on February 21.

On the other side, a failed attempt to have a closing day above the 139.80 region could send the market to the 200-day simple moving average (SMA) at 137.25, which stands near the 20-day SMA before flirting with the valid rising trend line and the 136.60 support. Below that, the market could switch the bullish picture to negative, hitting the 40-day SMA at 135.67 and the 100-day SMA at 134.31 marginally above the 133.95 barrier.

Briefly, GBPJPY is posting higher highs and higher lows in the medium term. That said, a descending move beneath the 100-day SMA would change the bullish move to bearish.