GBP/JPY - Will GBP/JPY Find An Obstacle on 50-day SMA? - 06/26/2017 (GMT)

Sterling moved choppily against the Japanese yen over the last two weekly sessions, however, it completed positive periods. The GBP/JPY pair is on track to snap for the second consecutive week the fifth losing candle. Also, the price rebounded on the 138.65 strong support level which overlaps with the 50-week SMA.

The technical structure suggests further rising but slightly above the 142.50 resistance level, there is a significant obstacle the 50-day SMA. Our expectation is a hit of the latter level and then a retracement until the 138.65 support barrier. The RSI indicator is confirming the recent incline as it is inserting the bullish area. Moreover, the MACD oscillator created an upward crossover with its trigger line in the previous sessions and is ready to climb above the zero line.