Technical Analysis – GBPJPY still bearish as it falls into the cloud
|GBPJPY has been slightly down since the beginning of today’s trading. The price at the time of writing is at 139.495.
Looking at the Ichimoku analysis, the Tenkan-sen line (red) has recently crossed below the Kijun-sen (blue). This alignment is a bearish short-term signal. Adding to this is the RSI indicator at 41, in bearish territory too. Extending on Ichimoku, it is of note that prices are currently within the cloud. Should they emerge on top of it we could have a challenge of the current negative momentum, but if they exit it from the bottom the downward movement is likely to continue.
Prices are roughly at the Tenkan-sen point and should they move upwards they’re likely to meet some resistance in the 141-142 area, an area where both the 200-day moving average (MA) and 50-day MA are situated, as well as the cloud top. On the downside, the cloud bottom at around 135.500 is expected to provide some support.
Finally, it should be mentioned that the pair recorded a bullish (golden) cross on January 13, generally perceived as a sign of a longer-term upward trend. The strength of the signal remains under question though as prices are at the moment below the 50- as well as 200-day MAs.
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