GBPJPY traded to lowest level since July 20
The GBPJPY made a run below its 100 day MA with momentum today. The pair has traded above and below that key moving average (currently at 135.62) over the last few days, and a swing area between 135.40 and 135.971. Today the move to the downside took the price down to 134.56. That was the lowest level since July 20. However the price has since rebounded and currently trades above and below its 100 day moving average.
Drilling to the hourly chart, the pair over the last 5 trading days has seen a number of flows between 135.40 and 135.578. The 100 day moving averages just above that area 135.653. The cracked below both the 100 day moving average and that swing area sent the price tumbling to the downside. However as fast as the price fell down, the price was equally fast and going back up. The high corrective price did find resistance near its 100 hour moving average at 135.897 and against a trendline at 135.99 (calll it 136). That trend line is mirrors the 100 hour moving average at 135.897.
What next for the pair?
On the downside, getting back below the 135.40 level (low from Tuesday to trade - and low of the swing area) would be more bearish.
On the upside, getting and staying above its 100 day moving average at 135.653 and the tne 100 hour moving average and trendline at 135.897 should solicit more buying momentum.
The battle zone after the failed break lower. Will the dip buyers force more corrective upside action, or will the sellers stay in control below topside technical resistance levels?
