The 200 hour MA has not been below since October 10 (source: FL)The GBPJPY surged higher on the back of Brexit hope but has consolidated over the last 6 or so trading days.That up and down consolidation has allowed the 200 hour moving average to catch up with the price. The pair has just tested that 200 hour moving average at 139.333 in trading today. The low for the day just reached 139.335. There has been a modest bounce higher as buyers lean against the level. I would expect stocks on a move below.If the moving average is broken, the low from yesterday at 139.058, followed by the key 200 day moving average at 138.645 remain as key hurdles to get below if the sellers are to keep control.Helping the move to the downside has been a lower GBPUSD. However, that pair just tested support near the 1.2834-38 area (its 200 hour MA and recent swing lows). It seems that both pairs are testing key support which increases the levels in each.
The GBP/JPY has expectedly risen above the POC zone and we can see a realignment candle (encircled arrow) suggesting another swing high.
The POC zone stands around 140.00-20 with a potential for a bounce higher. The price is supported above W L3 camarilla pivot and as long as it holds above, bulls will be dominating. Targets are 141.50 and 142.20. Have in mind that the price is also a bit extended to the upside ( Wizz 6-7), so at this point I don’t see it above 142.10 zone. The pair is subject to headline risk re Brexit so any mention of Brexit could spike the price violently in any direction.
The analysis has been done with the CAMMACD.MTF template.
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