Technical Analysis – GBPJPY showing signs of weakness below 50-
Updated
GBPJPY is showing signs of weakness after falling below its 50-day moving average but the 2-month neutral trend remains intact. The market continues to consolidate in a range between 147 and 152 after pausing an uptrend at a high of 152.85 on September 21.
RSI has fallen back below 50 into bearish territory, suggesting there is room for further downside in prices in the near-term. Strong support is expected at the bottom of the range at 147. Breaking lower would place the market into a previous range – 140-147 – that took place between April and September.
As long as the price remains above the 200-day MA at 144.14, the overall outlook leans to positive. Prices need to rise back above the 50-day MA (149.50 area) to improve upside momentum and increase the odds for a move to the upper range at 152 and to re-test the 152.85 peak. This level was last seen in June 2016 and may be quite a challenge to break. If successful, then GBPJPY would be back in an uptrend.
In the bigger picture, GBPJPY has traded above its 200-day MA since September 8, keeping the bullish outlook in place.
RSI has fallen back below 50 into bearish territory, suggesting there is room for further downside in prices in the near-term. Strong support is expected at the bottom of the range at 147. Breaking lower would place the market into a previous range – 140-147 – that took place between April and September.
As long as the price remains above the 200-day MA at 144.14, the overall outlook leans to positive. Prices need to rise back above the 50-day MA (149.50 area) to improve upside momentum and increase the odds for a move to the upper range at 152 and to re-test the 152.85 peak. This level was last seen in June 2016 and may be quite a challenge to break. If successful, then GBPJPY would be back in an uptrend.
In the bigger picture, GBPJPY has traded above its 200-day MA since September 8, keeping the bullish outlook in place.
Note
SIGNAL : ENTRY SELL @ 147.988 AT THE BREAK OF THE TRIANGLE DOWN.
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