GBPJPY extends to the upside

Technical Analysis

Author: Greg Michalowski | gbpjpy

Helped by GBP strength

The GBP is the strongest of the major indices today and that strength is reflected in the GBPJPY as well.  

Helped by GBP strength

Recall from yesterday, the price moved above the 100 day MA for the 2nd time in 3 days (the pair moved above on Thursday of last week as well only to fail).  

Yesterday, the momentum could not be sustained once again and the price did dipped back below that moving average level. However the 100 hour moving average held support both yesterday and today (currently at 134.224) and the price moved at a faster pace to the upside.

The run higher has now taken the price above the 38.2% retracement of the move down from the June 5 high at 134.795 AND a topside trend line at 134.97. Those levels are now risk levels for longs looking for more upside. 

On the topside, the 50% retracement of the same move lower comes in at 135.736.

Overall, the pair is running away from both its 100 hour moving average and 100 day moving average. That is bullish. The price moved above its 38.2% retracement. Bullish The price moved above a topside trend line. Bullish.

Admittedly, there is more work to do with the 50% retracement at 135.736 the next hurdle on the hourly chart.

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