Technical Analysis – GBPJPY surges above 188.00 key barrier
GBPJPY jumps above 188.00, confirming a higher low
A break above 193.50 could brighten the picture
A move below 183.70 may turn the outlook back to bearish
GBPJPY traded higher on Thursday, clearing the key resistance (now turned into support) barrier of 188.00. The move confirmed the higher high at 183.70, which cancels the bearish picture. However, the fact that the price remains below the important zone of 193.50 suggests that the outlook has not turned bullish either.
The oscillators are corroborating the notion that the bears may have jumped off the boat, at least for now. Similarly to the price action, both the RSI and the MACD have formed higher highs, with the former poking its nose above its equilibrium 50 line. The MACD, although negative, has moved above its trigger line.
For the outlook to brighten, the bulls would have to prove they are strong enough to push the action above the 193.50 barrier, a move that could take the pair above all the plotted moving averages as well. This could initially pave the way towards the 197.00 area, the break of which could see the bulls aim for the high of July 30 at 199.50.
The move signaling that the bears are back into the game may be a dip below the latest trough of 183.70. This may see scope for declines towards the low of August 5 at 179.90, or the 178.35 territory, which acted as a floor between July 2023 and January 2024.
To sum up, GBPJPY confirmed a higher low on the daily chart, but it has yet to form a clear uptrend structure. This means that the outlook has turned neutral for now.Related Assets
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