GBP/JPY Price Analysis: Bulls keep momentum steady, overbought indicators signal near-term correction possible

The pair rose to highs since 2007 at 199.90.
The daily RSI indicates an overextended buying momentum, suggesting a pending technical correction.
The hourly indicators have already started to consolidate.

Patricio Martín FXStreet

In Friday’s session, the GBP/JPY pair experienced upward momentum, rising by 0.37% and the pair reached multi-year highs, a clear indication of the stronghold buyers have within the market. While a near-term technical correction could potentially occur due to the overbought condition, the overall outlook remains bullish for the cross.

In the daily chart, the Relative Strength Index (RSI) has moved deep into overbought territory. The persistently high values hint at strong buying sentiment, but they also suggest a potential future correction. The Moving Average Convergence Divergence (MACD) reveals flat green bars, indicating positive momentum despite the relatively stable trend which may suggest that the pair might consolidate for the rest of the session.

GBP/JPY daily chart

When examining the hourly chart, the RSI reveals noticeable ebbs and flows, with the latest value standing at 61. Although still positive, this level appears somewhat less intense when compared to the daily chart. The hourly MACD histogram continues to display flat green bars, indicating steady positive momentum which mirrors its daily counterpart.

GBP/JPY hourly chart

From a broader outlook, the GBP/JPY's position relative to its Simple Moving Averages (SMAs) helps to clarify the overall trend. The pair stands above the 20, 100, and 200-day SMAs, reflecting a bullish outlook for both short and long-term scenarios.

GBP/JPY

Overview
Today last price	199.87
Today Daily Change	0.61
Today Daily Change %	0.31
Today daily open	199.26

Trends
Daily SMA20	196.03
Daily SMA50	193.45
Daily SMA100	190.81
Daily SMA200	187.14

Levels
Previous Daily High	199.9
Previous Daily Low	199.02
Previous Weekly High	197.86
Previous Weekly Low	194.74
Previous Monthly High	200.59
Previous Monthly Low	190
Daily Fibonacci 38.2%	199.36
Daily Fibonacci 61.8%	199.56
Daily Pivot Point S1	198.89
Daily Pivot Point S2	198.51
Daily Pivot Point S3	198.01
Daily Pivot Point R1	199.77
Daily Pivot Point R2	200.27
Daily Pivot Point R3	200.64

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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