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GBPJPY retreats from high on risk off flows


Retests the 200 hour MA

The GBPJPY moved higher in the Asian and early European session. The gains were help by some technical support buying against its 200 day MA at the Asian open, and got an extra boost when the price move through its 100 and 200 hour moving averages and a swing area between 150.798 and 150.937.  

The price action began to see more up and down volatile, but a new high was made at 151.517. That level stalled within a swing area between 151.506 and 151.592.

The subsequent move to the downside was helped by falling US stocks and with it a run out of the JPY crosses.  The fall took the price of the GBPJPY back toward its rising 200 hour moving average currently at 150.803. The price did dip below that moving average briefly, but has held support against it over the last three trading hours.

Going forward, the 200 hour moving average will be the barometer for both the buyers and sellers. 

Move below would open the door for a retest of its 100 hour moving average currently at 150.45. 

Stay above and the hopes for the longs/buyers against the moving average level stay in play with targets at 151.16, 151.285, the 61.8% retracement 151.352 and the aforementioned swing area between 151.506 and 151.592.

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