Strong momentum signals point to further gains in the near term
The post Strong momentum signals point to further gains in the near term appeared on BitcoinEthereumNews.com.
GBP/JPY holds steady near 207.00 on Thursday after touching a fresh year-to-date high on the previous day, with sentiment leaning in favour of the British Pound (GBP) following the United Kingdom’s Autumn Budget. Meanwhile, the Japanese Yen (JPY) remains under sustained pressure across the board as traders focus on rising fiscal concerns in Japan and uncertainty over the timing of the Bank of Japan’s next rate hike, keeping the broader backdrop supportive for Sterling against the Yen. From a technical perspective, the pair trades comfortably above its short, medium and long-term moving averages. The 205.00 psychological level, which sits close to this week’s low, acts as an initial floor, followed by the 21-day Simple Moving Average (SMA) at 203.70, which provides the first layer of dynamic support. Momentum indicators remain aligned with buyers. The Moving Average Convergence Divergence (MACD) indicator shows the MACD line holding above the Signal line, while the histogram continues to widen in positive territory, which points to strengthening bullish momentum rather than exhaustion. The Relative Strength Index (RSI) trades near 66, upbeat yet still below the overbought region. Near-term, the upside bias remains intact as long as GBP/JPY holds above the rising 21-day SMA. A shallow pullback would likely find support at 203.70, followed by the 50-day SMA at 202.43, while the 100-day SMA near 200.66 serves as a deeper cushion. A break above Wednesday’s peak would open the door toward the 207.50-208.00 zone. A drop in the RSI toward 50 or a loss of momentum on the MACD would indicate consolidation rather than a trend reversal. The overall technical backdrop continues to support buying on dips. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more…
