The day high just stalled at the 100 hour MA in the GBPJPY. That level NEEDS to be broken.
Is the GBPJPY a buy?
Buyers can argue that the sellers had their shot(s) and failed..
- The price fell below a lower trend line on Friday. Sellers had their shot to take the price lower on the break. They failed.
- Yesterday a new move low was made (lowest level since January 4), but only by a few pips. Sellers had their shot to take the price lower on the break. They failed.
- Today, another new move low was made (lowest level since January 4), but again only by a few pips. Sellers had their shot to take the price lower on the break. They failed.]
There comes a point when the sellers give up and turn around (market oversold?. Yes). The sellers turned to buyers. The price has moved to a high of 137.465 (from a low of 136.55).
Now, is the GBPJPY still a buy here?
Well, that high price for the pair had a reason to stall. At the high, the price was testing the 100 hour MA (currently at 137.447). Also near the level is the 38.2% of the move down from the May 30 swing high (the last corrective high) at 137.383. We currently trade at 137.30. Sellers leaned on the tests. There is a battle going on between buyers and sellers against the key level. PS. they also leaned against the same - but higher - moving average on May 30th.
As a result, getting above the 38.2% and the 100 hour MA would make the technical picture in the GBPJPY more bullish and give the pair another boost (with the 137.639, the 137.89 and the 200 hour MA at 138.118 the next targets).
Until then, however, the battle is on between the buyers who see a low in place on the inability to go lower, and the sellers against the 100 hour MA.
