GBP/JPY outlook: Repeated rejections suggest that pullback might be running out of steam
|GBP/JPY
The pullback from new 7-week high (136.62) faced strong headwinds and repeatedly failed to close below cracked rising 10DMA, with today’s action being contained by the indicator (currently at 135.51).
Larger bulls from 131.76 (22 June low) lost traction on approach to key Fibo barrier at 136.69 (61.8% of 139.73/131.76) but subsequent dips were so far contained by bull- trendline.
Also, long lower shadows of candles of past few days suggest that the downside is protected for now, but bounce and bullish close today is needed to signal reversal and formation of higher low.
Daily studies remain mixed (MA’s in bullish setup but bullish momentum is fading and stochastic heads south) lacking clearer direction signal but also keeping in play possibility of deeper fall on break below 10DMA (135.51) and trendline support (135.27).
Res: 135.98; 136.20; 136.69; 137.00
Sup: 135.51; 135.27; 135.04; 134.76
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