Trend line and 100 day MA converged. Getting a bounce.
The GBPJPY bottomed near trend line support on the 4-hour chart. At the low was also the 200 day MA at the 137.02 level (green step line). The low reached 137.08. That is a great technical level to hold and potentially base.
Looking at the 4-hour chart below, the pair has been trading in a wide range with a topside trend line and 200 bar MA on the 4-hour chart stalling rallies on the top (see red circles in the chart above), and a lower trend line and 200 day MA looming below (see green circles in the chart above).
Do we start the climb higher now? The technicals are there to make it happen. That was a key support level to hold. It held.
What would look good technically from this point going forward?
You need to crawl before you can run. Changing the shorter term trend around will need some technical help from clues. Those clues will come from price action in the shorter term charts.
Today, the price is still down, but in addition to knowing the 200 day MA held, we have moved above the 100 and 200 bar MA on the 5-minute chart below. That 100 bar MA is moving higher now. The question now is:
"Can the price now stay above that 100 bar MA line at 1.37.52, and also can the price get and stay above the 200 bar MA on the same chart?" (green line at 137.697 now).
ON a break traders may also look toward support at 137.22 (see red circles in the chart below).
If the buyers are to make a play against the 100 day MA and the trend line hold, then we should see buyers to line up against the 100 bar MA on the 5-hour chart now. If they do, a further technical story line can be written for the pair. If it does not hold, a retest of the lows (including the key 200 day MA) would be eyed.
