Topside trend line at 140.49 currently stalled the rally today
Let's face it...the GBPJPY has been moving up and down since the middle of October.
If anything, the up and down ranges have been more contained. The topside trend line is downward slopingo on the hourly chart below. Today's move higher after the Brexit Party news, reached up to that trend line, only to find sellers leaning against the level. That trend line cuts across at 140.49 currently. The high for the day reached 140.48. It will take a move above that area to tilt the bias more to the upside.
On the downside, the price has now corrected down off the highs to retest the 100 and 200 hour MAs (blue and green lines) which are near converged at 140.05-075. The area represents a lower barometer for the bulls and bears. If the MAs hold support, the battle between the MAs and the topside trend line continues. If the MAs are busted to the downside, there should be more roam in the downward direction.
PS on the downside, the 139.01-314 is home to a number of swing levels (including the lows for today). Yes...there have been breaks below that saw the the price move lower (really to test the 200 day MA at 138.499 currently) but those breaks were short lived. That area would be targetted on more downside momentum.
