A battle is on in the GBPJPY below the 100 and 200 hour MAs, but above a trend line.
Looking at the hourly chart for the GBPJPY, the price high today stalled just ahead of the swing high from October 23 at 140.73 (the high today reached 140.68).
The subsequent fall on that failure to extend higher, has now taken the price below the 200 and 100 hour MAs at 140.026 and 139.975 respectively. Moving below those MAs is more bearish.
Having said that, the pair just moved to a support trend line on the hourly chart defined by swing lows from Oct 23, 24 and today. That trend line comes in at 139.76 currently.
Traders are trying to stick a toe in the water against the trend line, but my guess would be that if broken, the buyers would turn to sellers, and we should see more downside momentum. The lows for the week at 139.46 and 139.26 are targets, followed by the low from last week at 138.86. The 200 day MA is down at 138.615. The price has been above that level since October 15.
For the dip buyers, they would want to see a move back above the 100 and 200 hour MAs to give them more confidence (although the price would have to stay above).
The battle is on. The sellers have the advantage today, but buyers are fighting back at the lower trend line.
