Forex technical analysis: GBPJPY based and moving back higher

Technical Analysis

Author: Greg Michalowski | forex-technical-analysis

100 hour MA provides a springboard for the buyers

Last week, the price of the GBPJPY moved - and closed - above the 100 day MA for the first times since the end of May (see post from the break last week by CLICKING HERE).   The break was significant. We needed to stay above that MA techincally to keep the buyers in control.

Over the last few days, the pair has consolidated in an up and down range and that allowed the 100 hour MA (blue line in the chart below) to catch up with the price. That MA was tested in the Asia-Pacific session and the buyers leaned against a level and have taken the price higher. That is bullish and the pair currently trades near the highs reached yesterday at the 136.756.  The buyers are in control. 

The holding of the line now creates a risk defining level for the buyers going forward. Stay above is more bullish. Move below is more bearish. 

Where can we go?

The next target comes against the high yesterday at 136.756. Above that the topside channel trend line comes in at 137.16 currently (and moving higher).  Above that, and the pair will be looking toward the September highs at 138.81 and the 38.2% of the move down from the end of May high at 139.60 (yellow area in the daily chart above).  Those are the next closest targets on a continued move higher in this pair. 
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