61.8% retracement also tested
The GBPJPY has seen the price move lower in the Asian and early London session, only to snapback higher and rise to new session highs in the early New York session.
The price move back to the upside has taken the price back above a broken trendline that cuts across at 153.90, and up to the falling 200 hour moving average and 61.8% retracement of the move down from the May high at the 154.247 level. The high price just reached 154.257 – just above that key dual target.
Sellers have leaned as traders have cause for pause against the technical levels.
The price is currently trading at 154.159. The broken trendline at 153.90 is now support. Stay above it and push back above the 200 hour moving average/61.8% retracement would increase the bullish bias (the 154.817 would be an upside target).
Conversely if the price moves back below the 153.90 level instead, more traders should start believing that the corrective move to the 200 hour moving average/61.8% retracement was enough. Getting below the 50% midpoint at 153.685 and the 100 hour moving average 153.482 would increase the bearish bias.