- The pair hit its highest levels since 2007 at 199.90.
- The daily RSI indicates excessive buying momentum, suggesting an impending technical correction.
- Hourly indicators have already started to consolidate.
During Friday’s session, the GBP/JPY pair recorded an upward momentum, rising by 0.37%, and the pair reached multi-year highs, which clearly indicates the robust position of buyers in the market. While there could potentially be a near-term technical correction due to the overbought condition, the overall outlook for the cross market remains hopeful.
On the daily chart, the Relative Strength Index (RSI) has moved deep into the overbought area. Continued high values indicate robust buying sentiment, but also suggest a potential future correction. The moving average convergence divergence (MACD) is showing flat green bars, indicating positive momentum despite a relatively stable trend, which could suggest that the pair may consolidate for the rest of the session.
GBP/JPY daily chart
Analyzing the hourly chart, the RSI is showing noticeable ebbs and flows, with the latest value being 61. While this level is still positive, it appears slightly less intense compared to the daily chart. The hourly MACD histogram continues to show flat green bars, indicating continued positive momentum that mirrors its daily counterpart.
GBP/JPY hourly chart
From a broader perspective, GBP/JPY’s position relative to elementary moving averages (SMAs) helps explain the overall trend. The pair is above the 20, 100 and 200-day SMAs, reflecting a bullish outlook for both short- and long-term scenarios.
