50% retracement, 200 hour moving average, swing level all clustered together near the 139.000 level
The GBPJPY earlier today fell below a cluster of support defined by a:
- swing level centered around 1.38994 (see red numbered circles)
- 200 hour moving average at 138.997.
- 50% retracement at 139.015
Add the natural support resistance level at 139.00 and the area is a key level for both buyers and sellers.
With the price moving below, the sellers are more in control. Stay below and we should see further downside probing going forward. The 61.8% retracement of the move up from the August 7 low comes in at 138.736. That level was tested at the lows today but could not sustain downward momentum. Getting back below that level should open the door for more downside probing.
Should the price move back above the 139.015 level, I would expect the sellers turned back to buyers as the break fails. The next upside target would be toward the 139.22 level followed by the 100 hour moving average at 139.424.
