GBPJPY does a lap in trading today (up and then all the way back down)

Technical Analysis

Author: Greg Michalowski | gbpjpy

On the wide, the pair  trades between the 100 and 200 hour MA (with little breaks today).

The GBPJPY has had an up and down day and in the process completed a lap (moved up and retraced all the way back down). 

On the wide, the pair  trades between the 100 and 200 hour MA (with little breaks today).

Generally speaking, the pair traded most of the day above the 100 hour MA below, and below the 200 hour MA above. Yes, there were some trading below the 100 hour MA (blue line currently at 136.406) and above the 200 hour MA (green line at 137.03 currently). However, each of those explorations failed.  

What next?

We currently trade near the session lows.   The last couple of hours have been finding support buyers against the 100 hour MA (and near an upward trend line).  Buyers are leaning  against that area as risk can defined and limited against that area.  However, I would expect that those buyers would likely have stops on a move below 136.35 area. The low on Monday was at 136.35. The lows today reached 136.37 (twice). Moving below that area would disappoint the buyers. 

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