GBP/JPY approaches the August 2015 high (195.28) as it extends the series of higher highs and lows from earlier this week.
GBP/JPY Outlook
GBP/JPY trades to a fresh yearly high (194.95) following the failed attempts to close below the 50-Day SMA (190.98), and a further advance in the exchange rate may push the Relative Strength Index (RSI) into overbought territory for the first time this year.
A move above 70 in the RSI is likely to be accompanied by a further advance in GBP/JPY like the price action from last year, with a breach above the August 2015 high (195.28) bringing the June 2015 high (195.89) on the radar.
Next area of interest comes in around the September 2008 high (197.42), but failure to test the August 2015 high (195.28) may keep the RSI out of overbought territory.
Need a break/close below the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) region to open up the monthly low (190.00), with the next area of interest coming in around 188.81 (November 2015 high) to 189.00 (38.2% Fibonacci extension).
--- Written by David Song, Strategist at FOREX.com
GBP/JPY Outlook
GBP/JPY trades to a fresh yearly high (194.95) following the failed attempts to close below the 50-Day SMA (190.98), and a further advance in the exchange rate may push the Relative Strength Index (RSI) into overbought territory for the first time this year.
A move above 70 in the RSI is likely to be accompanied by a further advance in GBP/JPY like the price action from last year, with a breach above the August 2015 high (195.28) bringing the June 2015 high (195.89) on the radar.
Next area of interest comes in around the September 2008 high (197.42), but failure to test the August 2015 high (195.28) may keep the RSI out of overbought territory.
Need a break/close below the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) region to open up the monthly low (190.00), with the next area of interest coming in around 188.81 (November 2015 high) to 189.00 (38.2% Fibonacci extension).
--- Written by David Song, Strategist at FOREX.com