Technical analysis: GBP/JPY makes slight headways from bottom of range

GBPJPY has pushed higher off a two-month low of 148.94 and is finding some difficulty in extending the move far above the 150.00 mark. The bearish simple moving averages (SMAs) are endorsing the decline from the 152.84 peak, while the Ichimoku lines are conveying a drop in the pair’s negative potency, but have yet to signal that downward forces have fully abated.

As things stand, the short-term oscillators are suggesting positive momentum is on the rise. The MACD, in the negative region, is soaring above its red trigger line towards the zero threshold, while the RSI is looking set to improve in positive territory. The stochastic oscillator is also promoting extra upside price action.

If the pair continues to make progress, initial friction to additional gains could develop around the 150.45 barrier before buyers face a tough resistance zone between the 50-period SMA at 150.76 and the 151.05 obstacle. Overstepping this barricade and the Ichimoku cloud, the price may jump towards the converged 100- and 200-period SMAs at 151.32. Should the bulls remain confident, they may then steer the pair to test the resistance section of 151.78-152.00.

Otherwise, if sellers resurface and drive the price lower, an immediate support band could emanate from 150.12 until the 150.00 handle. Successfully directing the pair beneath this, the red Tenkan-sen line at 149.75 could delay the bears from challenging the support base of 148.94-149.17. Diving below this floor, the price may meet the upside defence of 148.45 - 148.76 that has held from March 24, and was tested on July 20. Sinking further, sellers may then target the 148.10 low from early March.

Summarizing, in the short-term timeframe, GBPJPY is ranging between the limits of 148.45 and 153.47. That said, buyers are making efforts to improve, yet the picture remains slightly skewed to the downside, keeping price action around the base of the consolidation.