FxNews—The GBP/JPY pair trades bearish, below the key moving averages, 50- and 100-period SMAs. The pullback from the 193.0 mark was anticipated because the Stochastic Oscillator hinted at an oversold market, meaning the Japanese Yen was overpriced then.
As of this writing, the currency pair stabilized above the October 10 low at approximately 193.8.
GBPJPY Technical Analysis
As for the technical indicators, the Awesome Oscillator histogram is below zero with green bars, meaning the bear market weakens. Additionally, the Stochastic stepped outside of the oversold territory, depicting 24 in the description. This indicates GBP/JPY is not in an oversold situation, and the prices could rise higher.
Overall, the technical indicators suggest while the primary trend is bearish, GBP/JPY could aim for higher resistance levels.
GBP/JPY Bulls Eye 195.4 If Support Holds
The immediate support is at 193.65. From a technical perspective, the currency uptick in momentum will likely resume if GBP/JPY bulls maintain prices above this support. In this scenario, the next bullish target could be the 195.4 resistance, backed by the 50-period simple moving average.
- Good reads: EURJPY Aims for 163.0 as Key Support Holds
The Bearish Scenario
Conversely, a new bearish trend could form if bears (sellers) push the prices below the immediate support. If this scenario unfolds, the pair’s value could drop toward the 50% Fibonacci retracement level at 191.95.
- Support: 193.65 / 191.95
- Resistance: 195.4 / 196.7