Nikkei opens up slightly higher. GBPJPY moves up, but comes off as the market consolidates
The Nikkei opened at its highest level in 15 months and this led to a slight move higher in some of the risk pairs like the GBPJPY. The stocks have since come off and this keeps the pair contained for now.
The GBPJPY has been waffling around the 200 bar MA on the 5 minute chart at the 1.4902 level (green line in the chart above). The market has drifted higher on the higher open but is now just below at the 149.00 area..
The pair in NY corrected 50% of the Wednesday low to Thursday high in the NY session and moved back above the 100 bar MA on the 5 minute chart (blue line in the chart above) in late NY trading. The move above the 200 bar MA (green line in chart above) is the next step for the pair.
With the low for the day at 148.87 the downside risk is limited. A move below this level would not be welcomed and would likely lead to a move toward the 148.72 level where the 100 bar MA on the 5 minute chart is found. However, if the low can hold, and the stock market can hold its own, a move higher may be in the cards.
Longer term, the pair has an upside target at the 150.42 where the 200 day moving average is found. From there the market will need to make the call dependent on market demand.
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