On a calm Monday, the GBP/JPY recovery loses steam.
Price is unable to make a new high and continues to make higher lows.
The GBP/JPY is now moving in a little bullish direction. It’s currently trading between two important trendlines: the June highs and the low. In four-hour charts, price is above the 21-SMA, but resistance is at 153.75. The next place to keep an eye on is 154.00, followed by 154.25.
There are no obvious signals from technical indicators. The RSI indicates that there is some minor upside potential, and the momentum is trending south, approaching 100. The absence of activity on Monday causes indications to flatten.
At 154.80/85, the downtrend line can be noticed. A break higher would cancel out any bearish bias and open the way to 155.00 and a test of 155.75, the last line of defense before the May peak.
On the downside, the important level is 153.20/30, an uptrend line that, if broken, will open the door to further losses, with a target of 152.70. Above 152.00, the next support is seen./n
