Range Markets

  • GBP/JPY keeps Monday’s rebound above monthly support line.
  • Two-week-old horizontal line adds to the downside filter, 154.60 guards short-term upside.
  • Normal RSI conditions battle bearish MACD to confuse bulls.

GBP/JPY remains firmer around 154.05, subdued of late, during Tuesday’s Asian session. In doing so, the cross-currency pair remains above an ascending trend line from late April, as well as fortnight-long support, amid bearish MACD and normal RSI line.

Hence, GBP/JPY buyers can stretch the run-up towards the weekly resistance line around 154.60 but any further upside needs a strong push to the north of the 155.00 threshold.

In a case where the quote remains strong above 155.00, February 2012 top surrounding 156.60 will be in the spotlight.

On the flip side, a break of the immediate support line near 153.75 could drag the GBP/JPY prices to a short-term horizontal area close to 153.50.

However, a clear downside past-153.50 will not hesitate to revisit the early month tops near 152.20.

Overall, a descending triangle formation, coupled with the sustained trading beyond the nearby key support line, keeps GBP/JPY buyers hopeful.


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