A bit of a battle is going on
The GBPJPY is sharply higher on the day but the rise has run into the 100 hour MA and 38.2% retracement above (blue line). That has put a stall on the pair and there has been some ups and downs over the last few hourly bars.
The current bar, however, is trying to hold above the high from yesterday at the 134.613. Are buyers reaady to make a play against that level and push higher. Time will tell of course but it may be a close risk level for some traders now. Stay above is more bullish. Move below and all bets are off on that idea.
What we know, however, is that even if the support does hold, the overhead resistance at the 100 hour MA and 38.2% are very key for bias going forward. If the rally today is more than just a plain vanilla correction, those two levels need to be broken. Without it….I will say it again….the correction is just plain vanilla.