GBPJPY Surpasses SMAs, Heading up to 35-Month High

GBPJPY continues to rise above the Ichimoku cloud, remaining in a bullish movement over the past four months, stretching its upward pattern to a fresh 35-month high of 152.30 on Friday. According to the RSI, positive momentum could push for further gains in the short-term as the indicator picks up steam above its 50 level. The MACD, though, is flattening around the zero level.

A move higher could push the bulls near the multi-month high of 152.30 ahead of the 153.80 resistance, registered in April 2018.

A reversal to the downside could stall at the immediate 20- and 40-period simple moving averages (SMAs) around the 151.50 level. Further below, the 150.75 barrier, could also provide support, as the pair was unable to fall significantly under that line in the last week. Any violation at this point could potentially trigger further sell-off in the market, probably leading the price down to 149.30 and the 23.6% Fibonacci retracement level of the up leg from 136.90 to 152.30 at 148.70.

Regarding the long-term picture, the bullish outlook is building up as the pair continues to record higher highs; a dive below the 200-day SMA could shift the sentiment into a bearish one.