GBPJPY looked set to make its fourth straight day of gains on Tuesday as upside momentum continues to increase. Prices were capped by the bottom of the Ichimoku cloud just below 162.60. Further upside bias could see prices moving into the cloud to challenge the 50-day moving average. A break above the 50-DMA would shift the near term outlook to neutral/positive and the next resistance beyond this level would come at 165.
Underlining the current upside momentum are the positively aligned Tenkan-sen and Kijun-sen lines, and RSI crossing above just 50. However, MACD is still in negative territory and further downside moves are possible. A dip in prices could see the pair revisiting the recent support levels of 160 and 158.40. Failure to hold above these levels could see prices move back towards the 2½-year low of 154.70 set back in February.
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