GBPJPY’s Upside Risks Overpower Minor Setback

GBPJPY’s two-month ascent, which has challenged the critical 150.00 psychological hurdle, a near 34-month high, is showing little indication of receding as the commanding upwards picture prevails. The soaring simple moving averages (SMAs) are also defending the positive structure. In spite of the pause in the blue Kijun-sen line, the Ichimoku lines overall are suggesting that the price is determined to gain further ground.

The short-term oscillators are conveying mixed signals in directional momentum. The MACD, far above the zero mark is advancing above its red trigger line, while the RSI is falling in overbought regions. However, the RSI has yet to sink below the 70 level and confirm any negative pullback in the price.

If buyers maintain the upwards course, immediate constrictions could arise from the 150.00-150.11 resistance belt. Overtaking this crucial border, the pair may then hit the 150.65 obstacle before heading for the 151.66 barrier. Should buying interest persist, the bulls may then aim for the 152.27 high, achieved in April 2018.

Otherwise, if sellers manage to drive the price down, primary support could evolve at the March 2019 peak of 148.86 (previous resistance-now-support), where the red Tenkan-sen also currently lies. Diving from here, the pair may meet the blue Kijun-sen line at 148.31 before facing the tough support section of 147.27-147.87, which also contains the 50-period SMA. Sinking further into the cloud, another limiting region of 146.31-146.61 could attempt to terminate a price plunge.

Summarizing, GBPJPY is sustaining its sturdy bullish bias above the SMAs and the 147.27-147.87 support zone. Nevertheless, a retracement below the 146.31-146.61 boundary could undermine the positive structure and trigger a price sell-off.