GBPJPY trying to build a base to move higher
The GBPJPY has traded to a new session high (and highest level since July 2nd). In the process, the pair has moved back above the falling 100 hour MA (blue line). The pair also based against a swing area in the 135.77-804 area. That area was home to swing lows on June 19, June 25 and July 1. On July 2, the price moved below that floor area on the way to the 135.164 July 3rd low, before basing and grinding back higher.
Admittedly, the price today saw prices move lower, and then back higher. However, important for the bulls, is that the last corrective low in the NY session based at the swing area outlined above. Holding that was bullish and we have seen more upside momentum (and new session highs).
Having said that, There is work to do to get buyers more excited.
- The 38.2% of the move down from July 1 is at 136.161. Getting above that level is really needed to give the buyers more control. It is the minimum corrective level needed for the bulls to show they mean some business.
- The 200 hour MA at 136.272 is another key topside level to get back above. That level is slso near the June 28 low.
Get above those two levels (and stay above) gives the buyers more control and puts some fear that a low may be in place.
