Battle between trend line and 200 hour MA now
The GBPJPY has soared in trading today, helped by both a positive bias in the GBPUSD and some USDJPY “risk on” flows (that weakened the JPY). The run higher took the price above its:
- 50% retracement of the move down from the August 22 high at 128.674,
- the 100 hour moving average at 128.780 (blue line),
- 200 hour moving average at 129.149 (green line)
The pair did stall against a topside trend line on the hourly chart at the 129.772 level. The high price reached 129.78 and backed off. Resistance was found.
Where is support?
The 200 hour moving average and 61.8% retracement at 129.149 area is so far the support for the pair. The price dip just took the price to that level and bounced. We currently traded 129.49 – between those support and resistance levels.
Traders will be looking for a break in either direction for the next bias clue. Traders may also look to lean against the levels as well. Overall, however, the buyers are more in control.