FX.co ★ HameedH | GBP/JPY

My GBP/JPY Strategic Analysis: The GBP/JPY M15 chart shows a strong short-term bullish recovery that has recently encountered resistance near 208.80–208.85. Price rallied sharply from the 207.90–208.10 region, forming a sequence of higher highs and higher lows before reaching the recent peak. However, the last few candles show a clear pullback, with price now around 208.60, indicating that buying momentum is temporarily weakening.

The moving averages provide an important structural signal. The short-term red moving average is rising strongly and remains below current price, while the purple moving average is also turning upward. This supports the recovery structure. However, the longer-term dark-red average remains above price and slopes downward, creating significant overhead resistance around 208.70–208.80. A sustained break above this area would indicate that buyers are overcoming the broader intraday resistance. RSI(14) is approximately 53.8, having declined substantially from above 70. This confirms that the market has moved out of overbought conditions and that bullish momentum has cooled. Nevertheless, RSI remains above 50, so momentum is still mildly supportive of buyers rather than decisively bearish. Key support levels are 208.55–208.60, 208.45–208.50, and 208.27–208.30. Resistance is concentrated around 208.70–208.75, followed by 208.83–208.90. Strategically, the immediate bias is neutral-to-bullish above 208.55, provided buyers defend the rising short-term moving average. A successful M15 close above 208.75 could reopen the path toward 208.83–208.90. Conversely, a decisive break below 208.55 would weaken the recovery and expose 208.45, with deeper support around 208.27. The recent rejection near the highs makes confirmation important. Traders should watch whether the current pullback produces a higher low or develops into a deeper reversal. Volume and candle-closing strength around 208.55 and 208.75 should provide useful confirmation.