GBPJPY moves sharply lower today to test support at 146.02
The GBPJPY has come under pressure today falling back below the 100 day MA at the 148.07 level. On the break, the pair moved down and tested the 38.2% retracement of the move up from the January 2009 low to the August 2009 high at the 146.02 level. That level comes in at the 146.02 level. The low reached 146.11.
The GBPJPY has been largely consolidating over the last 4 or so months. Two days ago the price moved above the 100 day MA (blue line in the chart above) for the first time since August 26th. The key break took the pair above the 200 day MA as well at the 150.20 level on the same day. However, yesterday the price moved back below the 200 day MA and today, the fall below the 100 day moving average led to further selling pressure to the 146.02 support.
The markets successful test today of support (low reached 146.11) but the break of the 100 day moving average is a good news/bad news trading scenario. The good news is the bounce off support. The bad news is the move back below the 100 day MA.
As a result, from a technical perspective, look for buyers on the dips toward the 146.02 level with stops if the level is broken. While on the topside, look for sellers against the 200 hour MA 147.24 currently (see green line in the chart below) with stops on breaks on a move above.
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