GBP/JPY Price Analysis: More consolidation on the cards
- GBP/JPY to keep moving sideways while above 153.70.
- Consolidation range between 154.40 and 153.50 prevails, with mixed signals.
The GBP/JPY continues to move sideways between 153.70 and 154.40, within the bigger range of 153.50/155.00. A break above 154.50 should strengthen the pound, clearing the way for a test of 155.00.
Technical indicators offer mixed signs. With the bearish correction from multi-year highs being limited, the negative momentum is vanishing. At the same time, the upside continues to be limited and not supported at the moment, by short-term indicators.
Price is moving around the 21-SMA in the four hours chart. The odds of false breakouts warrant precaution for the sessions ahead. A firm break of 153.70 would expose the critical support at 153.50, that if broken should point to more losses.
On a more general perspective, while above 145.20/50 (long-term uptrend line) the outlook will remain positive of the pound.
GBP/JPY 4-hour chart
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.
