GBP/JPY pulls back from a fresh weekly high (192.25), but the exchange rate may track the positive slope in the 50-Day SMA (189.66) as it continues to hold above the moving average.
GBP/JPY Outlook
GBP/JPY carves a series of higher highs and lows as it extends the advance from the weekly low (190.05), with a break/close above the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) region opening up the 195.28 (August 2015 high) to 195.70 (61.8% Fibonacci extension) area.
However, lack of momentum to test the March high (193.54) may keep GBP/JPY within a defined range, with a breach below the weekly low (190.05) raising the scope for a test of the moving average.
Failure to hold above the indicator may push GBP/JPY towards 189.00 (38.2% Fibonacci extension), with the next area of interest coming in around the March low (187.97).
--- Written by David Song, Strategist at FOREX.com
GBP/JPY Outlook
GBP/JPY carves a series of higher highs and lows as it extends the advance from the weekly low (190.05), with a break/close above the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) region opening up the 195.28 (August 2015 high) to 195.70 (61.8% Fibonacci extension) area.
However, lack of momentum to test the March high (193.54) may keep GBP/JPY within a defined range, with a breach below the weekly low (190.05) raising the scope for a test of the moving average.
Failure to hold above the indicator may push GBP/JPY towards 189.00 (38.2% Fibonacci extension), with the next area of interest coming in around the March low (187.97).
--- Written by David Song, Strategist at FOREX.com