Tests 100 hour MA again after stalling near week lows
The GBPJPY has been caught in the down and up rinse cycle in the market today.
Looking at the hourly chart above, in the Asian session, the price fell to support near last week's lows at 148.40. The rally into the London morning session stalled against the 100 hour moving average (Blue line in the chart above). The fall from that line, to the price down to test the low for this week at 148.049. Guess what? It bounced off that level.
What now?
The price is higher testing the 100 hour MA again. Remember that moving average held in the Monday morning session. Levels also near the natural big figure level of 149.00.
Do the buyers from below take profit here? Do sellers lean against the level and look for a rotation back lower? If they do, risk on the trade is defined and limited. A move above traders will look toward the 200 hour MA and the 200 bar MA on the 4-hour chart at 149.25 area.
The down and up rinse cycle is in full force. However, the levels of support and resistance seem to be giving traders low risk trading opportunities. We are testing one of the key technical levels right now.
