Unable to stay above 153.30, bullish pressure wanes

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  • The pound hits new two-year highs against the yen and retreats.
  • GBP / JPY remains bullish but shows some signs of exhaustion.

The GBP/JPY it rose to 153.35, hitting a new two-year high. The cross then retraced below 153.20 and the bullish pressure eased. The pound should stay above 153.25 / 30 to clear the way for more gains. The next strong resistance emerges at 153.70 / 75 before the 154.oo zone.

The MACD suggests some weakness not necessarily a correction. It reduces the chances of a bullish acceleration.

Immediate support is seen at 152.80 / 90 (horizontal level / 21 SMA on the 4-hour chart). A consolidation below should ease the positive momentum of the pound. Below the next level is 152-40 / 50 which, if broken, should point to a deeper correction and a test of 152.00.

Chart of four

Technical levels

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