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Technical Analysis – GBP/JPY struggles to clear the 148 level

GBP/JPY 20/03/19 | EconAlerts

GBP/JPY struggles to clear the 148 level; signals neutral in the short term.

GBP/JPY slid sideways after it found strong resistance just shy of the 149 level for the second time this month. In the short term, the consolidation phase may continue as the RSI has yet to show clear direction, while the MACD is easing towards its red signal line, backing this view as well.  Nevertheless, as long as the former holds above 50 and the latter above its red line, chances for upside movements are higher.

On the upside, the pair would push hard to breach its previous peak of 148.86, which is the highest reached in more than 3 months. Topping this level, a more concrete barrier could probably appear around 149.50. Should the market break this ceiling as well, the next key resistance could arise near 150.70.

In the negative scenario, a decline below the 147.20-146.65 support area could pressure the price towards 145, located in the crossroads of the 23.6% Fibonacci level of the up leg from 132.49 to 148.86 and the upward trendline drawn from the 135.79 low. A decisive close below that point and more importantly a drop under the 50-day moving average currently at 144.28 could trigger a steeper sell-off, shifting attention down to the 38.2% Fibonacci of 142.63.

Turning to the medium-term picture, GBP/JPY is maintaining a positive profile thanks to the higher highs and higher lows registered during the past three months. A rally above the 149.50 may confirm the start of a new bullish cycle.


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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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