The GBPJPY is one of the bigger movers today. The pair is up 1.10% on the day.
That move to the upside has seen the price extend above the 200 day MA at 163.287, and also above the 100 day MA at 163.60. Finally the 50% retracement of the move down from the October 31 high was reached - and briefly breached - at 163.727. The high price for the day reached 163.745 just 2 pips above the midpoint level, and has backed off.
That gauntlet of resistance targets were key for the bias going forward. Certainly, if the price could get and stay above those level, the buyers would be in firm control on the daily chart, and traders would be looking for more upside momentum. Our
However, that did not happen and now with the price backing off and trading back toward the lower 200 day MA at 163.28, the market is on the edge between
- Going back higher from here and breaking through to topside targets, OR
- Seeing buyers turn more to sellers and correcting more of the gains.
Drilling to the 5 minute chart, the run higher is below earlier highs between 163.44 and 163.503. Traders can watch that area for sellers now. If the price moves above that area, there is more upside hope.
On the downside the rising 100 bar moving average currently at 163.019 would be another downside target that if broken would take some of the bullishness away from the run higher today AND give the sellers above some comfort in the short term technically.
