FxNews—GBP/JPY resumed its uptrend trajectory after it shifted above the 75-period simple moving average. However, the buying pressure caused the Stochastic Oscillator to signal overbought when the prices peaked at the 38.2% Fibonacci resistance level.
As of this writing, the currency pair trades at approximately $193.4, losing 0.3% of its value in today’s trading session.
GBPJPY Technical Analysis
As for the technical indicators, the prices are above the 75-SMA, and the Awesome Oscillator histogram is above zero with green bars. However, Stochastic hints that the British Pound is overpriced against the Japanese Yen in the short term.
Overall, the technical indicators suggest the primary trend is bullish and should resume after minor corrections.
The Forecast
The immediate resistance is at the 38.2% Fibonacci retracement level. If GBP/JPY bulls stabilize the prices above this level, the uptrend will likely resume. In this scenario, the next bullish target could be the 195.3 mark.
The Bearish Scenario
Please note that the bullish outlook should be invalidated if GBP/JPY dips below 191.7, active support. If this scenario unfolds, a new bearish wave could be triggered, targeting 190.0.