GBP/JPY Price Forecast: Struggles at 50-day SMA with bulls near 215.50

The GBP/JPY ended Tuesday’s session unchanged at 215.17 as buyers remained reluctant to test the 50-day Simple Moving Average (SMA) at 215.43, seen as the first resistance level on its way to re-test yearly peaked at around 219.61.

GBP/JPY Price Forcast: Technical outlook

Price action suggests the GBP/JPY is facing key resistance that could cap the advance, which could open the door for sideways trading. Further confirmation of this, is the Relative Strength Index (RSI): The RSI shifted flat exactly at the 50-neutral level, an indication that neither buyers nor sellers are fully committed to push the cross above or below familiar levels.

On the upside, the first key resistance is the 50-day SMA, followed by the 216.00 mark. A breach of the latter will expose the 216.50 figure, followed by the 217.00 psychological mark

Downwards, the GBP/JPY first support would be the 215.00 milestone, followed by the 100-day SMA at 214.53. Below this, sits the 200-day SMA at 217.05 ahed  the August 7 low of the day (LOD) at  211.47.

GBP/JPY Price Chart – Daily