GBPJPY Remained Above 196: Stochastic Warns Overbough

GBPJPY remained above 196, the 61.8 Fibonacci support level. The primary trend is bullish, but Stochastic depicts 83.0, hinting at an overbought GBP.

A Dip below the immediate support at 196.6 could trigger a consolidation phase, targeting 195.1. The 195.1 supply zone can provide a decent bid price to join the bull market.

GBPJPY Technical Analysis – 27-December-2024

The British currency trades bullish against the Japanese Yen. However, the uptrend from 188.0 stalled at the 198.9 resistance. As of this writing, the pair trades at approximately 197.5, testing the ascending trendline as support.

Furthermore, the Awesome Oscillator histogram is above zero, but the colors constantly change between red and green. This means the trend direction is uncertain.

On the other hand, Stochastics illuminate the trend. The indicator hovers in overbought territory, signaling an overbought market, which could result in the GBP/JPY beginning a consolidation phase.

Overall, the technical indicators suggest that while the primary trend is bullish, GBP/JPY has the potnatial to consolidate near the lower support levels.

GBPJPY Could Test 195.1 on Drop Below 196.6

The immediate support is at 196.6. From a technical perspective, a new consolidation phase could emerge if GBP/JPY drops below the 196.6 mark.

If this scenario unfolds, the next bearish target could be 195.1, backed by the 38.2% Fibonacci support level.

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The Bullish Scenario

The immediate resistance is at 197.5, backed by the 78.6% Fibonacci. From a technical perspective, the uptrend will likely resume if the GBP/JPY value exceeds 197.5.

In this scenario, the uptrend will likely extend, targeting 198.9, followed by 200.0.

GBPJPY Support and Resistance Levels – 27-December-2024

Traders and investors should closely monitor the GBP/JPY key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.