GBP/JPY retests top of range despite PM Johnson’s hospitalization
|GBPJPY sped up towards the top of its range on the four-hour chart on Monday after officials eased fears over Boris Johnson hospitalization.
A closure above the 134.47 resistance, which is also the 50% Fibonacci of the bearish wave from 144.94 to 124.00, and more importantly above the 200-period simple moving average (SMA), could prove valuable to the market, confirming the bullish signals the upward-sloping RSI and the fast Stochastics are currently providing.
Such an event could drive the price up to the 61.8% Fibonacci of 136.94 if the 136.00 round level turns out to be a weak obstacle, while beyond the former, the door would open for the 138.80 barrier.
In the negative scenario, a drop below the 132.00-132.50 supportive area which involves the 23.6% Fibonacci could bring the bears back into play, shifting the spotlight towards 130.40. Lower and below the Ichimoku cloud, the sell-off could next stall somewhere between the 23.6% Fibonacci of 128.94 and the 128.15 number.
In brief, GBPJPY is currently in a range and only a break above the 134.47 ceiling could restore bullish appetite, while a close below 132.00 could put the pair back on a bearish path.
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.