Watch the 100 hour MA for clues on correction
The GBPJPY moved above the 38.2% of the move down from the July 25 high on the hourly chart yesterday at 130.02 (call it 130.00) and tried to stay above. However, Trump tweet and cracking of the technical level, led to buyers turning to sellers and the price tumbled.
The fall, however, did reach to a lower trend line and the risiing 200 hour MA (green line) at 128.99. That MA line stalled the fall a the week’s low on Tuesday (on two looks on that day) and bounced. So traders, familiar with what happened before, did the same thing today. Risk could be defined and limited.
Now the buyers are not out of the woods. If the price is to go higher from here, the price will need to work its way back above the 100 hour MA at 129.488.