Correction off low keeps below the key MA
As the USDJPY trades to new lows, the pressure has remained on the GBPJPY.
Technically, the price tumbled below its 50% retracement of the move up from the April low at 141.84. Yesterday, that level was tested and held. The fall below that 50% then targeted the 100 day MA at 141.347. That level was also broken, and it remains a risk defining level for shorts. Stay below and the sellers remain in control.
When you drill down to the 5-minute chart, traders can more easily see how the longer term levels have led to a reaction.
For example, the 141.84 is the 50% retracement. Yesterday, the level was tested on the opening and the price moved higher. Buyers leaned against the level. Today, the price waffled above and below the level. It was not a clean break and run. However the "bearish tell" happened when the correction up to the line, started to hold (see 3 red circles). Retesting and holding was key technically. The price moved lower.
What happened at the 100 day MA?
In this case, the break has been more clean. The price fell below, tried to move above but really could not muster any action above the MA line. The price bottomed initially near the lower channel trend line and corrected higher. However, the 100 day MA has held again.
Needless to say, that 100 day MA is a key technical level. Stay below is more bearish. Move above (and stay above) and we should see a further corrective move higher with the 141.62 and that 50% at 141.84 the corrective targets.
Where is the next target on further downside momentum?
The 61.8% retracement on the daily at 140.36 should solicit some buying. It was also a high on April 20th. The lower channel support line on the 5-minute chart will also be eyed.