GBP/JPY in small upside retracement but the outlook remains bearish.
GBP/JPY is trading slightly higher over the past few hours after the rebound on the 145.32 support level. The price is trying to pare some ground of the previous red sessions, however, it is still developing below the short-term moving averages in the 4-hour chart.
The Relative Strength Index (RSI) is currently increasing positive momentum towards its neutral threshold of 50, while the stochastic oscillator posted a bullish crossover within the %K and %D lines in the oversold levels, both hinting that the next move in prices could be on the upside rather than on the downside.
If the pair bounces further up, immediate resistance could be met at the 20- and then at the 40-simple moving averages (SMA) at 145.95 and 146.14 respectively. Jumping above these levels, the pair could challenge the 146.50 resistance level, which holds near the 200-SMA.
However, should the market extend losses, immediate support could come from the 145.32 level. A leg below this area could increase downside pressure and push the price until the 143.75 hurdle.
In the bigger picture, the pair is bearish as it posted a sharp sell-off following the touch on the 149.30 resistance obstacle and bears are still have the upper hand.
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