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Technical Analysis – GBP/JPY is looking bullish

GBP/JPY 22/02/19 | EconAlerts

GBP/JPY consolidates after reaching an 11-month high of 145.00.

GBP/JPY failed to post more gains above the fresh 11-month high of 145.00 that it posted earlier this week and is moving sideways within a narrow range of 144.05 – 145.00 in the 4-hour chart. Currently, the price is developing around the red Tenkan-Sen line suggesting a possible bearish retracement, while it still stands above the 20- and 40-simple moving averages (SMA).

Technically, the stochastic oscillator continues to improve above the oversold zone and is posting a bullish cross within the %K and %D lines, while the RSI indicator is flattening in the positive territory, confirming the recent neutral bias.

Should the market head north again and surpasses the 145.00 strong psychological level, the 146.00 level would be closely watched, taken from the high on November 22, as there is not any significant area before this level.

On the flip side, the 144.05 support has been halting downside pressure this week and if bearish pressures resume, the 143.25 barrier, which coincides with the 40-SMA, could come into focus. If the bears drive the price even lower it would be interesting to see whether the pair could cross below the bottom of the Ichimoku cloud and the 23.6% Fibonacci retracement level of the up leg 132.50 to 145.00, around 142.05.

Overall, in the short-term picture, GBP/JPY is looking bullish and should remain positive as long as the market holds above the 2-year low of 132.50.


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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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