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Technical Analysis – GBPJPY pauses rally, outlook remains bullish

The long-term uptrend in GBPJPY remains intact as the rally continued to a fresh 7-year high of 195.87 which was hit on Wednesday this week. Prices have been rising consistently since bouncing off an April 14 low of 174.86. There was a slight pullback in the past 2 days and support was provided by the tenkan-sen line after prices dipped to a low of 193.46. Consolidation is expected in the near-term as the recent rally takes a pause. This loss in upward momentum is indicated by the RSI which has dipped but still remains in bullish territory above 50.

The overall outlook for GBPJPY is bullish as the tenkan-sen and kijun-sen lines are positively aligned and the Ichimoku cloud is rising. A sustained rally and break above the 195.87 peak would open the way to the next psychological level of 200.

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