Forex: GBP/JPY support holds at 151.00 as dip buyers remain active

FXstreet.com (Barcelona) - The GBP/JPY finished the day 16 pips lower at 151.79. The pair traded as low as 150.89 before finding firm support at the 9 dma, and is still up an impressive 6.08% MTD in April.

According to Fan Yang of FXTimes, “The 4/22 US session brought the pair lower to test the 200-hour SMA near the 151.00 handle. A little lower, we also have a projected rising trendline, and a pivot area going down to about 150.50. The RSI is at 40, below which the bullish momentum established by the most recent upswing would be lost.”

He went on to add, “A break below 150.50, especially with a failed pullback that holds below 151, would open up the 148-148.10 support pivot and then the 146.41 pivot. A rally back above the 151.60 area likely puts the focus back at the 152.50 resistance area, a break above which opens up the April high at 153.85.”

The FXStreet.com Trend Index on the daily chart remains slightly bullish, while the OB/OS index remains neutral. Short term moving averages remain in bullish set technical set up, with price above both the 9day and 20day ma’s which are upward sloping. Both of these developments are constructive, and should help keep any declines relatively shallow in the coming sessions.