GBP/JPY Rally Pushes RSI Back into Overbought Zone
GBP/JPY extends the series of higher highs and lows from earlier this week to register a fresh yearly high (206.17), with the recent advance in the exchange rate pushing the Relative Strength Index (RSI) into overbought territory.
GBP/JPY Outlook
The move above 70 in the RSI is likely to be accompanied by a further advance in GBP/JPY like the price action from earlier this year, and the oscillator may show the bullish momentum gathering pace as it climbs to its highest level this year.
A break/close above 206.60 (100% Fibonacci extension) opens up 208.60 (78.5% Fibonacci extension), with the next area of interest coming in around 213.30 (100% Fibonacci extension) to 214.11 (August 2008 high).
However, lack of momentum to extend the recent series of higher highs and lows may pull the RSI back from overbought territory, with a move below 204.90 (61.8% Fibonacci extension) bringing the 202.00 (23.6% Fibonacci extension) to 202.40 (50% Fibonacci extension) region on the radar.
--- Written by David Song, Strategist at FOREX.com
GBP/JPY Outlook
The move above 70 in the RSI is likely to be accompanied by a further advance in GBP/JPY like the price action from earlier this year, and the oscillator may show the bullish momentum gathering pace as it climbs to its highest level this year.
A break/close above 206.60 (100% Fibonacci extension) opens up 208.60 (78.5% Fibonacci extension), with the next area of interest coming in around 213.30 (100% Fibonacci extension) to 214.11 (August 2008 high).
However, lack of momentum to extend the recent series of higher highs and lows may pull the RSI back from overbought territory, with a move below 204.90 (61.8% Fibonacci extension) bringing the 202.00 (23.6% Fibonacci extension) to 202.40 (50% Fibonacci extension) region on the radar.
--- Written by David Song, Strategist at FOREX.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.