GBP/JPY Rally Pushes RSI Towards Overbought Zone

GBP/JPY registers a fresh yearly high (188.29) as it stages a three-day rally, with the advance in the exchange rate pushing the Relative Strength Index (RSI) towards overbought territory.

GBP/JPY Outlook

GBP/JPY approaches the November 2015 high (188.81) as it carves a series of higher highs and lows, with a break/close above the 189.00 (38.2% Fibonacci extension) handle opening up the 192.40 (50% Fibonacci extension) to 193.50 (38.2% Fibonacci extension) region.

However, failure to clear the November 2015 high (188.81) may keep the RSI out of overbought territory, with a move below 186.60 50% Fibonacci extension) opening up the 183.90 (50% Fibonacci retracement) to 184.80 (23.6% Fibonacci extension) area.