GBP/JPY Price Analysis: Bulls keep momentum steady, overbought indicators signal near-term correction possible

Source Fxstreet
May 24, 2024 20:00
  • The pair rose to highs since 2007 at 199.90.
  • The daily RSI indicates an overextended buying momentum, suggesting a pending technical correction.
  • The hourly indicators have already started to consolidate.

In Friday’s session, the GBP/JPY pair experienced upward momentum, rising by 0.37% and the pair reached multi-year highs, a clear indication of the stronghold buyers have within the market. While a near-term technical correction could potentially occur due to the overbought condition, the overall outlook remains bullish for the cross.

In the daily chart, the Relative Strength Index (RSI) has moved deep into overbought territory. The persistently high values hint at strong buying sentiment, but they also suggest a potential future correction. The Moving Average Convergence Divergence (MACD) reveals flat green bars, indicating positive momentum despite the relatively stable trend which may suggest that the pair might consolidate for the rest of the session.

GBP/JPY daily chart

When examining the hourly chart, the RSI reveals noticeable ebbs and flows, with the latest value standing at 61. Although still positive, this level appears somewhat less intense when compared to the daily chart. The hourly MACD histogram continues to display flat green bars, indicating steady positive momentum which mirrors its daily counterpart.

GBP/JPY hourly chart

From a broader outlook, the GBP/JPY's position relative to its Simple Moving Averages (SMAs) helps to clarify the overall trend. The pair stands above the 20, 100, and 200-day SMAs, reflecting a bullish outlook for both short and long-term scenarios.

 

GBP/JPY

Overview
Today last price 199.87
Today Daily Change 0.61
Today Daily Change % 0.31
Today daily open 199.26
 
Trends
Daily SMA20 196.03
Daily SMA50 193.45
Daily SMA100 190.81
Daily SMA200 187.14
 
Levels
Previous Daily High 199.9
Previous Daily Low 199.02
Previous Weekly High 197.86
Previous Weekly Low 194.74
Previous Monthly High 200.59
Previous Monthly Low 190
Daily Fibonacci 38.2% 199.36
Daily Fibonacci 61.8% 199.56
Daily Pivot Point S1 198.89
Daily Pivot Point S2 198.51
Daily Pivot Point S3 198.01
Daily Pivot Point R1 199.77
Daily Pivot Point R2 200.27
Daily Pivot Point R3 200.64

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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