GBP/JPY approaches the April high (200.55) following the failed attempt to close below the 50-Day SMA (192.88).
GBP/JPY Outlook
GBP/JPY climbs to a fresh monthly high (198.59) to push the Relative Strength Index (RSI) towards overbought territory, with a move above 70 in the oscillator likely to be accompanied by a further advance in the exchange rate like the price action from last month.
GBP/JPY may further retrace the decline from the April high (200.55) as it carves a series of higher highs and lows, with a break/close above the 199.80 (61.8% Fibonacci retracement) to 200.50 (78.6% Fibonacci extension) region opening up 202.00 (23.6% Fibonacci extension).
However, failure to clear the above the 199.80 (61.8% Fibonacci retracement) to 200.50 (78.6% Fibonacci extension) region may keep GBP/JPY within the April range, with a move below the 195.28 (August 2015 high) to 195.89 (June 2015 high) area opening up the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) zone.
--- Written by David Song, Strategist at FOREX.com
GBP/JPY Outlook
GBP/JPY climbs to a fresh monthly high (198.59) to push the Relative Strength Index (RSI) towards overbought territory, with a move above 70 in the oscillator likely to be accompanied by a further advance in the exchange rate like the price action from last month.
GBP/JPY may further retrace the decline from the April high (200.55) as it carves a series of higher highs and lows, with a break/close above the 199.80 (61.8% Fibonacci retracement) to 200.50 (78.6% Fibonacci extension) region opening up 202.00 (23.6% Fibonacci extension).
However, failure to clear the above the 199.80 (61.8% Fibonacci retracement) to 200.50 (78.6% Fibonacci extension) region may keep GBP/JPY within the April range, with a move below the 195.28 (August 2015 high) to 195.89 (June 2015 high) area opening up the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) zone.
--- Written by David Song, Strategist at FOREX.com