GBP/JPY consolidates near 2-month highs
GBPJPY had been in a prolonged uptrend since January, posting an eight-year high of 186.75 on August 22 before experiencing a pullback. After a period of rangebound trading, the pair stormed back above the 50-day simple moving average (SMA) to a two-month peak of 185.94, but its rally seems to have temporarily paused.
Considering that the short-term oscillators remain tilted to the upside, the price could edge higher and revisit its recent two-month high of 185.94. Piercing through that wall, the pair may challenge the eight-year peak of 186.75. If that hurdle also fails, the bulls could propel the price to multi-year highs, where the 190.00 psychological mark might curb further advances.
On the flipside, should the pair reverse lower, immediate support could be found at 184.00, which acted as strong resistance both in July and October. A break below that region could trigger a retreat towards the September-October support zone of 180.72. In case of a downside violation, the bears may then attack the 179.45 hurdle, which held strong both in July and October.
In brief, GBPJPY retains a muted tone in the past few sessions despite its solid spike to the upside. Can the pair extend its advance or are we heading for a reversal?
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Forex Market Report - 19th June 2024
