100 and 200 hour MA stalls the fall
The EURJPY came down to test its 200 hour MA and 100 day MA (see prior post), and the fall stalled.
The GBPJPY has had more volatility but the pattern is the same. The high today - looking at the hourly chart - stalled at the 144.90-96 area. Looking to last week's highs, those levels tried to be a base after the new high was reached. When that area was broken, the buyers started to lean to sellers. Today, that area was the high. Sellers came in.
The German headline debunking the earlier headline on Brexit, sent the pair back into a freefall. But like the EURJPY, the price stalled at MAs. For the GBPJPY it is 200 hour MA (green line) and the 100 hour MA (blue line) at 143.56.
What now?
Well, what we know is the support at the 100 and 200 hour MA. That is the risk for longs. That is the level the sellers want/need to be broken and stay broken.
On the topside, dip buyers will want to see the 144.108 to 144.32 hold on a correction.
Looking at the 5-minute chart below that is the 38.2-50% of the move down from the high and a swing below before the run lower. Apart from the high, that is an interim level that would give the dip buyers more confidence.
