The GBP/JPY pair recently surged to its highest level since 2007, reaching 199.90. The daily Relative Strength Index (RSI) suggests that the buying momentum is overextended, hinting at a potential correction. On the hourly chart, indicators are already showing signs of consolidation.
During Friday’s trading session, the GBP/JPY pair rose by 0.37%, hitting multi-year highs and showcasing strong buyer dominance in the market. While a short-term correction may be on the horizon due to overbought conditions, the overall trend remains bullish.
The daily RSI is in overbought territory, indicating robust buying sentiment but also signaling a possible correction in the future. The Moving Average Convergence Divergence (MACD) shows flat green bars, suggesting positive momentum despite a relatively stable trend, potentially leading to consolidation.
Analyzing the hourly chart, the RSI fluctuates but remains positive, with the latest reading at 61, less intense compared to the daily chart. The hourly MACD histogram also displays flat green bars, reflecting steady positive momentum.
Looking at the GBP/JPY’s position relative to its Simple Moving Averages (SMAs), the pair is above the 20, 100, and 200-day SMAs, indicating a bullish trend for both short and long-term scenarios.