- GBP/JPY seesaws between 139.35 and 140.75 since late-October.
- An absence of extreme RSI conditions keeps price momentum in check.
- Sustained trading beyond 200-bar SMA portrays the pair’s strength.
While following a three-week-old trading range, GBP/JPY seesaws around a 100-bar SMA level of 140.00 during Wednesday’s Asian session.
The pair has been trading between 139.35 and 140.75 since October 24 while the normal conditions, between 70 and 30, of 14-bar Relative Strength Index (RSI) also portray the choppy sentiment.
As a result, buyers will look for entry beyond 140.75, targeting the previous month high of 141.51, whereas sellers could aim for 23.6% Fibonacci retracement of October month upside, at 138.91, on the downside break of 139.35.
It’s worth mentioning that the pair’s sustained trading above 200-bar Simple Moving Average (SMA) level of 137.40 portrays the bullish bias, a break of which could fetch the quote to mid-October low surrounding 135.50.
GBP/JPY 4-hour chart