The GBPJPY currency pair on the Daily Chart has been in an uptrend since 22 June 2020 when it registered the low price at 131.728, followed by a series of higher tops and higher bottoms.
On 13 August 2020, the GBPJPY pair recorded the high price of 140.181.
When applying Oscillator Analysis to the price chart, one can see that price is trading above the SMA 60 period Moving Average line, a fact which confirms the GBPJPY currency pair’s upward direction.
Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values above the zero line which hints to the bullish bias of the financial instrument.
Additionally, the Relative Strength Index (RSI) Oscillator registers values above the fifty line which indicates positive sentiment.
All three technical indicators are in agreement with regards to the upward bias of the pair.
Three price targets may be calculated upon applying the Fibonacci tool to the price chart.
- The first price target is estimated at 137.605 (161.8%).
- The second price target is seen at 139.230 (261.8%).
- The third price target is projected at 141.859 (423.6%).
While the first target and the second have already been breached, the GBPJPY pair is currently trading above the uptrend line. The presence of the Bullish Engulfing pattern hints at a potential rally to the upside.
Of course, supply and demand as well as the crowd sentiment will determine the future course of GBPJPY currency pair.
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