Technical Analysis – GBPJPY pulls back from new 5-month high

GBPJPY slowed down whithin the ascending channel after posting a fresh five-month high of 142.64.

Currently, the technical oscillators are keeping the bias skewed to the upside. The MACD, in the positive area, is rising above its trigger line, while the RSI is pointing marginally down above the 50 level. In trend indicators, the Ichimoku lines and the short-term simple moving averages (SMAs) are moving higher as well.

If buying interest picks up, early tough resistance could occur at 142.70, taken from the August 2020, where the ceiling of the upper bound of the channel also lies. A violation of this level may push the pair to challenge the 145.00 barrier, registered on February 2020.

Otherwise, if sellers sink deeper, the next support could come from the 20- and 40-period SMAs at 142.00 and 141.80 respectively. Steeper declines under these lines would have to tackle the lower surface of the Ichimoku cloud around the 200-day SMA at 141.33 ahead of the 141.07-141.27 support area. Another negative extension could could encounter the 140.35 hurdle.

Overall, the very near-term picture remains positive inside the ascending channel, which has been developing since December 2020. A break above 142.70 would further strengthen the bullish outlook.