GBPJPY fails to overcome 153.40, neutral to bearish bias
The GBPJPY attempted to break through the upper limit of the neutral zone it was in this week, but its efforts were unsuccessful as the 153.40 barrier once again defended the bears.
Short-term oscillators also favor bears; The RSI moves sideways near its neutral 50 mark and the Stochastic Oscillator is approaching oversold territory after the bearish cross in the% K and% D lines.
Therefore, the short term risk looks neutral to negative at this time and another test of 151.25 is possible. A fall below the latter could pave the way for the 23.6% Fibonacci retracement level of the bullish leg from 129.30 to 156.06 to 149.75 ahead of the support at 148.45, which lies near of the 200-day SMA.
On the upside, the resistance area near 153.40 may add some foundation to the market, but a breach at this point might not get much attention unless the price moves back above the high of 40 months of 156.06 and the barrier of 156.50, recorded in January 2018.
In short, the GBPJPY could trade from neutral to negative in the short term. A close below the 200 day SMA could bring further selling pressure to the market, while a jump above the 156.06 level could increase buyer’s interest.