GBP/JPY has been trading sideways lately, specifically since Nov. 4, when it fell sharply after coming across the 156.20 zone. The current range is between the 152.60 and 153.70 barriers, which suggests a short-term neutral bias.
Bearing in mind that the pair is also trading below the downside line taken from the high of Oct. 26, we would see more chances for a downside exit out of the range rather than an upside one.
We will get even more comfortable with the downside upon a break below the 152.16 barrier, marked by the inside swing high of Oct. 6.
This may encourage the bears to dive towards the low of that day, at around 150.80, or the low of Oct. 4, at about 150.20.
If they are not willing to stop there either, a break lower could pave the way towards the low of Oct. 1, at 149.20.
Shifting attention to our short-term oscillators, we see that the RSI lies below 50, pointing somewhat down, while the MACD, already below zero, has touched its toe below its trigger line.
Both indicators suggest that the pair may start gaining downside speed again soon, which increases the chances for another leg south soon.
For the bulls to gain the upper hand, we would like to see a break above 154.63, marked by the inside swing low of Nov. 2.
This may confirm the break above the aforementioned downside line taken from the high of Oct. 26 and could initially pave the way towards the 156.20 obstacle, defined as resistance by the high of Nov. 4.
Another break, above 156.20, could allow extensions towards the 157.10 barrier or even the 157.79 zone, marked by the highs of Oct. 29 and 26, respectively.