The GBPJPY reached a high at 174.67 today. That took the price to the highest level since January 2016. There are a number of swing lows and highs going back to 2013 above and below that level (from around 174.75 to 175.50 - see red numbered circles).
The area might give traders some cause for pause as risk can be defined and limited and it becomes a level to take profit. However, if the price moves above the area, the sellers will likely be inclined to cover.
Drilling all the way down to the hourly chart, the pair has been trending since bottoming on May 11, but with up-and-down price action along the way (of course). However, since May 16, the price has been able to stay above its rising 200-hour moving average (green line in the chart below).
On Wednesday's trade this week, the price moved down to test that moving average on 2 separate occasions (it was also the low of a swing area too - see red numbered circles), only to find the support buyers leaning against the level.
Going forward the 100-hour moving average at 173.526 and the 200-hour moving average at 173.015 (both are moving higher) would need to be broken to increase the bearish bias.
