GBPJPY has regained upward momentum again after the rally of the past week took it back above the 50-day moving average. The intra-day bias is slightly bearish as the %K line of the stochastic oscillator has crossed below the %D line and RSI is trending downwards, though it’s still in bullish territory above 50.
In the medium-term, the outlook is bullish as prices are above the Ichimoku cloud. But the upside bias is restrained from the negatively aligned tenkan-sen and kijun-sen lines. If GBPJPY manages to break above the resistance level of the June 24 high of 195.87, this should strengthen the bullish bias and put it back on the uptrend that started in mid-April.
If prices continued to head lower, support should come from the kijun-sen line at 190.42. A drop below this level would likely shift GBPJPY into a range.
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