GBP/JPY Rebounds Ahead of 50-Day SMA to Clear February High
GBP/JPY bounces back ahead of the 50-Day SMA (188.72) to clear the February high (191.32), with the recent advance in the exchange rate pushing the Relative Strength Index (RSI) towards overbought territory.
GBP/JPY Outlook
GBP/JPY climbs to a fresh yearly high (192.86) as it rises for the seventh consecutive day, and the exchange rate may track the positive slope in the moving average as it extends the advance from the monthly low (187.97).
At the same time, a move above 70 in the RSI is likely to be accompanied by a further advance in GBP/JPY like the price action from last year, with a break/close above the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) region opening up the 195.28 (August 2015 high) to 195.70 (61.8% Fibonacci extension) area.
However, failure to break/close above the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) region may keep the RSI below 70, with a move below 189.00 (38.2% Fibonacci extension) raising the scope for a test of the moving average.
GBP/JPY Outlook
GBP/JPY climbs to a fresh yearly high (192.86) as it rises for the seventh consecutive day, and the exchange rate may track the positive slope in the moving average as it extends the advance from the monthly low (187.97).
At the same time, a move above 70 in the RSI is likely to be accompanied by a further advance in GBP/JPY like the price action from last year, with a break/close above the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) region opening up the 195.28 (August 2015 high) to 195.70 (61.8% Fibonacci extension) area.
However, failure to break/close above the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) region may keep the RSI below 70, with a move below 189.00 (38.2% Fibonacci extension) raising the scope for a test of the moving average.