GBP/JPY Found resistance at 23.6% Fibo

Since late August 2017 the GBP/JPY pair entered into bullish channel which development the bears decided put an end. During the first days of February the pair pinned a remarkable high at 156.60, a level that was abounded after the Brexit vote. From then on the bears came into game with overs 1000 pips and led the pair towards the psychological hurdle at 145.00.

As seen on the four hour time frame the price bounced from the above mentioned critical level but found resistance at the 23.6% Fibonacci retracement of latest February to March downward slope at 147.70. On the same chart the 20-day SMA is slowly turning  its direction towards north. RSI and stochastic are located slightly above their mid-lines and are also heading north.

Resuming the uptrend seems to be elusive now as bulls should work hard first to get closer to the 38.2% Fibo where around the pair spent some time for consolidation. Although the indicators on the four hour time frame are hinting bullish outlook this will be short lived. The BoJ’s rate decision on Thursday will support the Japanese Yen’s strength while the Sterling remains weak and this combination will define the further development of the pair.