GBP/JPY Price Analysis: Between two trendlines with modest positive bias
- The recovery of GBP/JPY losses momentum on a quiet Monday.
- Price unable to hit a new high, still making higher lows.
The GBP/JPY is moving with a slightly bullish bias. It is trading between two relevant trendlines, from June highs and from the low. Price is above the 21-SMA in four-hour charts, facing resistance at 153.75. Above the next area to watch is 154.00, followed by 154.25.
Technical indicators offer no clear signs. RSI suggests some modesty upside potential, and the momentum is moving south, about to break 100. The lack of volume on Monday contributes to flatten indicators.
The downtrend line is seen at 154.80/85. A break higher should negate any bearish bias and would open the doors to 155.00 and to a test of 155.75, the last line of protection to the May top.
On the downside, the key level is 153.20/30, an uptrend line that if broken should clear the way to more losses, with an immediate target at 152.70. Below the next support is seen above 152.00.
GBP/JPY 4-hour chart
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
