GBP/JPY Price Analysis: Bears step in as indicators consolidate, Yen top performer in the session
|- The GBP/JPY currently trades at 190.86 marking a 0.12% loss in Tuesday's session.
- Daily RSI and MACD indicate a slight reduction in buyer's strength, hinting at a potential phase of consolidation.
- Despite some short-term negativity, the GBP/JPY's placement above primary SMAs indicates a bullish broader outlook.
- Fundamentals were on Yen's side, as it was the top performer in Tuesday's session.
The GBP/JPY pair is currently trading at the 190.86 level in Tuesday's session, with a modest decrease. However, the downside movements seem to not threaten the clear bullish trend seen in the broader timeframe.
On the daily chart, beginning with the Relative Strength Index (RSI), it has shown a slight reduction in strength from overbought territory but remains in the positive region. This suggests that while buyers have dominated recent trading, their control is slightly slipping, indicating a potential consolidation or retraction stage. Furthermore, the Moving Average Convergence Divergence (MACD) histogram's decreasing green bars, show that the upward momentum is losing strength as well.
GBP/JPY daily chart
On the hourly chart, the RSI fell to negative territory, indicating that the sellers have been dominating recent trades on the hourly timeframe. This is further substantiated by the MACD histogram's flat green bars, indicating that short-term buying momentum has stalled.
GBP/JPY hourly chart
In conclusion, the daily and hourly charts show discrepancies with the daily chart indicating a continuing, though weakened, buying momentum. On the other hand, the hourly chart indicates the dominance of sellers. This divergence between the two charts signals potential upcoming volatility in the GBP/JPY pair. However, in case the pair holds above its main SMAs, the outlook will still be positive.
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