Awaiting the next shove

The GBPJPY is setting up between MA resistance above and swing area support below.

Awaiting the next shove

Looking at the hourly chart, the 200 hour moving average stalled the rally in trading today. That moving average currently comes in at 155.247.

On the downside, a swing area between 154.39 and 154.44 found early buyers against that level. The low for the day reach 154.47.

With resistance against a technical level holding above and support against a technical level holding below, traders are now looking for the next shove in either direction.

The sellers have little more the advantage as the correction off the low did stall near the earlier Asian session lows intraday and also swing highs going back to May 17 and May 18 (see red horizontal line). Nevertheless it will take a move below the swing area to open the door for further downside probing. The 1.5378 to 1.5383 area would be the next downside target (see blue numbered circles).

If the 100 and then 200 hour moving averages are broken, a Topside trendline connecting the most recent highs cuts across at 155.59 (and moving lower). Move above that level and the swing highs from last week would be targeted culminating in the high at 156.065.