Sellers in control on breaks of levels today
The GBPJPY – like the GBPUSD – tried to rally in earlier trading, but stalled just ahead of its 100 hour moving average (line in the chart below). That led to buyers turning to sellers. The 50% retracement of the move up from the April 25th low at 145.108 was broken, followed by the break of the 200 hour moving average at 144.92 (greenline in the short below).
The pair has now moved down to its 200 day moving average at 144.482 where we currently are trading above and below as a “stall” against the level, entices some modest profit taking. However, the sellers remain in control.
Broader risk (for those looking for more downside) would be a move above the 61.8% retracement of 144.78 (and low from last Friday in that area). A more important ceiling would be at 144.92 – the 200 hour moving average. That MA was a ceiling after being broken earlier today. Sellers would not welcome a move back above that MA level now.
On more weakness, the recent lows from April at 144.04 and 143.96 nd then the April 25 low at 143.718 – which also happens to correspond with the 100 day moving average – are targets.