GBP/JPY could stay neutral; trend signals skewed to the downside [Video]
|
GBP/JPY keeps trading sideways but short-term trend signals seem skewed to the negative side as the pair has already crossed below the supportive trendline, the 50-day simple moving average (SMA) is preparing to cross above the 20-day SMA, while the price itself is fluctuating marginally below the Ichimoku cloud.
The neutral mood is likely to stay in the short-term if the RSI and the MACD continue to lack direction, with the price expected to be congested between the 61.8% Fibonacci of 140.70 of the downleg from 149.47 to 126.53 and the 143.50 resistance area.
In case selling pressure strengthens below 140.70, nearby support could be found around the 139.40 barrier, where any break lower would confirm the start of a downtrend and a bearish outlook in the medium-term picture, especially if the 50% Fibonacci of 138.00 and the 200-day SMA fail to hold as well.
On the upside, the broken ascending trendline could act as immediate resistance if the 20- and 50-day SMAs and the 143.50 mark prove easy to get through. A decisive close above the trendline and the previous high of 144.59 could send the price towards the December peaks between 146.00 and 147.00. Should buying pressure persist, the next turning point could be within the 147.94-148.86 area.
In brief, GBPJPY is expected to hold neutral within the 143.50-140.70 zone. Medium-term traders could also remain indecisive unless the price falls below 139.40 or rises above 144.60.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.