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GBP/JPY Might be back in a Bullish Mode

The GBP/JPY opened the week falling but found support around 169.50, a support in April and May. Then we had a sharp reversal back to last week's high around 174. 

GBP/JPY Daily Chart 9/11

(click to enlarge)

A break above 174 can revive the bullish outlook especially if the daily RSI climbs back above 60. 

Now, since the market has been choppy, we might expect a bearish attempt in the short-term.

When we look at the 4H chart, we can see that the RSI is overbought. If there is indeed a pulblack, we might want to expect buyers around 172.00, which would keep the bullish outlook intact, with upside at least toward the 175.33 high on the year. Now if price falls back below 171.25, and the 4H RSI falls back below 40, GBP/JPY will shift back to the bearish outlook in the short-term within the larger framework of a sideways market in 2014.

GBP/JPY 4H Chart 9/11

(click to enlarge)