The GBPJPY not left behind
The GBPJPY has also marched lower in trading today.
That pair surged higher this week. A week ago the pair closed at 130.13. The high today reached 1.4321 today before marching lower.
The move lower has pushed below trend line support on the hourly chart and below a ceiling area from Tuesday and and Wednesday at 130.50 area. The fall has taken the price back to the 100 hour MA (blue line in the chart above) at 138.19 and the 38.2% at the 138.00 level. The low reached 138.21.
Looking at the intraday 5-minute chart, the price has accelerated the trend below the lower trend line. The underside of that trend line will now be eyed as close resistance on a correction.
We must remember though that as the week comes to a close, traders have to decide "do they want the risk into the weekend". The activity in the GBP pairs suggests a desire to be short. Was it that or dip buyers, who got stopped out in an illiquid summer Friday afternoon? We don't know. So plan accordingly and understand that it is Friday.