GBP/JPY Pushes Above April High
GBP/JPY pushes above the April high (200.55) to register a fresh yearly high (200.65).
GBP/JPY Outlook
The three-day rally in GBP/JPY has pushed the Relative Strength Index (RSI) above 70 for the second time this year, and the overbought reading in the oscillator is likely to be accompanied by a further advance in the exchange rate like the price action from last month.
A close above the 199.80 (61.8% Fibonacci retracement) to 200.50 (78.6% Fibonacci extension) region may push GBP/JPY towards the 202.00 (23.6% Fibonacci extension) to 202.40 (50% Fibonacci extension) zone, with the next area of interest coming in around 204.90 (61.8% Fibonacci extension).
However, failure to extend the recent series of higher highs and lows may pull the RSI back from overbought territory, and lack of momentum to hold above the 199.80 (61.8% Fibonacci retracement) to 200.50 (78.6% Fibonacci extension) region may push GBP/JPY back towards the 195.70 (61.8% Fibonacci extension) to 196.60 (23.6% Fibonacci extension) area.
--- Written by David Song, Strategist at FOREX.com
GBP/JPY Outlook
The three-day rally in GBP/JPY has pushed the Relative Strength Index (RSI) above 70 for the second time this year, and the overbought reading in the oscillator is likely to be accompanied by a further advance in the exchange rate like the price action from last month.
A close above the 199.80 (61.8% Fibonacci retracement) to 200.50 (78.6% Fibonacci extension) region may push GBP/JPY towards the 202.00 (23.6% Fibonacci extension) to 202.40 (50% Fibonacci extension) zone, with the next area of interest coming in around 204.90 (61.8% Fibonacci extension).
However, failure to extend the recent series of higher highs and lows may pull the RSI back from overbought territory, and lack of momentum to hold above the 199.80 (61.8% Fibonacci retracement) to 200.50 (78.6% Fibonacci extension) region may push GBP/JPY back towards the 195.70 (61.8% Fibonacci extension) to 196.60 (23.6% Fibonacci extension) area.
--- Written by David Song, Strategist at FOREX.com
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