Stay below the 100 hour MA
The GBPJPY is lower today and the technicals have given some tilt to the downside.
Specifically:
- The price yesterday moved below an upward sloping trend line. Now that break did not run lower, but the move higher found sellers near the high from Friday and the underside of the broken trend line. Admittedly, that is not all that negative, but it is showing some topping potential.
- Today the price moved below the 100 hour MA (blue line currently at 133.418). That MA has been tested today on a number of occasions, but has found sellers near the area.
The key for a downside tilt is to stay below the 100 hour MA. Also of importance is to give the sellers some comfort. Levels to get to and through would be:
- 132.55-69 swing area
- 132.04-138 swing area
- 200 hour MA at 131.726
A move below each would have traders looking toward the 38.2% at 130.60.
So there is a little tilt to the downside in the GBPJPY, but there is work to do - and a key barometer above to stay below at the 100 hour MA.
