GBP/JPY Daily Analysis
GBP/JPY upwards momentum seems to be continuing with the pair currently trading at 165.27 during the first session of the new week. The intraday resistance levels are at 165.88 and 166.29. The near-term support levels are at 165.08 and 164.84.
On the intraday charts, a bullish continuation pattern is indicating a further rise in the coming day. The pair is keeping above the key support levels with the SMA-14 indicating support at 162.49 and the SMA-50 support line way below at 157.76. The RSI is at 73 and within the oversold zone which may cause a small correction phase. The mid-band is at 162.45 and the upper and lower bands are at 165.34 and 158.74 respectively. Considering the RSI oversold indication, the pair is likely to take a small dip which can be used for a buy entry. A reasonable buy entry will be at or near 164.75 with an intraday target of 60 to 70 pips and a stop-loss at 164.40.
An intraday closing below 164.70 may further extend the possible correction. Therefore bulls require a sustained price action above the 165.00 level to continue their hold.