Technical Analysis – GBPJPY at 3-Month High
- GBPJPY marks new higher high; remains restricted
- Resistance near 198.50; support seen around 196.00
GBPJPY charted a three-month high of 198.42 at the top of a bullish channel, increasing speculation that a new bearish wave could soon start, especially after the close below the 61.8% Fibonacci retracement at 197.35.
Technical indicators are showing mixed signals: the stochastic oscillator is poised for a decline, while the RSI and MACD remain in bullish territory. The 20-day SMA crossing above the 50- and 200-day SMAs suggests potential trend continuation, but a bearish rising wedge is currently creating uncertainty.
If the price breaks above 198.50, the next resistance could occur between 201.50 and 202.00. Continued buying may then push the pair to 203.70 and then towards the 205.40-206.00 zone.
Alternatively, a slide below the 196.00 number could find initial support around the 194.00 area, where the 20- and 200-day SMAs as well as the 50% Fibonacci level are positioned. Further losses could retest the 50-day SMA and the 38.2% Fibonacci of 190.70, a break of which could cause a dramatic downfall towards the channel’s lower band currently seen at 187.20.
In short, GBPJPY is in a cautious area, with decisive movements above 198.50 or below 196.00 likely guiding future price action.
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
