Beijing news sends the GBPJPY lower. The failed break above earlier is a concern too
Before the Beijing headlines, the GBPJPY was the strongest of the major currencies but it did have some technical problems. More specifically, the high price going back to October 17 at 141.493 was broken but only to 141.566. The price backed off against that level and was trading around 141.26 before the news headlines pushed the pair even lower.
Having said that, earlier in the day the price was able to extend above a key swing area at the 140.68-74 area (see yellow area and red numbered circles). That area had stalled rallies back and October 24, October 31 and again on November 5. Earlier today, the price also stalled in that area before basing and surging higher.
That level is a key borderline for the bulls and bears. Stay above and the pair remains in the upper trading range. Move back below and the pair moved back into the meat of the up and down range going back to October 22.
