Forex technical analysis: GBPJPY ping pongs from support to resistance
Moving into cluster of resistance area...
The GBPJPY opened and moved lower - and to the lowest level since October 12th. The low stalled at 147.62. Going back to October 5th, there are a number of swing lows in the 147.604 to 147.72 area (red circles). IN addition, a lower trend line connecting lows from the last few weeks also came in in that area. Buyers leaned against the dual support area. The level held. The price moved higher.
The rally, has extended up to another key area. This one is defined by a downward sloping trend line at 149.15 currently, AND the 200 bar MA on the 4-hour chart at 149.112. The high price today reached 149.105. We currently trade at 148.92.
So the fall stalled at key support and the rally stalled at a key resistance area.
We trade closer to the high resistance level now. Stay below is more bearish, but should there be a break, There are more upside targets to get to and through. The first target would be the 38.2% at 149.26, followed by the 200 bar MA on the 4-hour chart and another trend line at 149.378. Get above and the door opens for further upside momentum.