GBPJPY tests 38.2% retracement. Moves above 100 hour MA today.

November 25, 2011 by · Leave a Comment 

The GBPJPY is at a key level. The pair is testing the 38.2% of the move down from the most recent consolidation high from November 18th. That level comes in at the 120.261 level.  The pair earlier moved above the 100 hour MA (blue line) at the 120.056 level. This level was tested in the last hour of trading and held.The last time the price closed above the 100 hour MA was back on November 9th. The break should be significant for the pair.

So the buyers above the 100 hour MA are nice to see. However, momentum needs to be developed above the next key resistance at the 120.26 level.   If momentum cannot be found, the bears are likely to re-emerge.  Other targets above include the 50% at 120.543, and the 200 hour MA at the 120.73 level (green line).

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