GBPJPY shows some technical disappointment
GBPJPY is trading lower for the second day in a row after yesterday’s high price stalled against the swing/ceiling zone between 157.42 and 157.766.
Today the pair moved below a former high/low dating back to December 31 between 155.918 and 156.06. The price is currently trading in this swing zone after hitting a low of 155.449 earlier today. This is the lowest level since January 4.
If price can sustain in this swing zone and re-ignite a downward move, it would give sellers more confidence for a push towards 154.86 (Jan 3rd swing low (and year low), followed by the 38.2% retracement of the rise from the Dec 20 low at 154.618
Conversely, move above the swing zone now and traders selling on the break will likely be disappointed. I would expect them to start looking back towards the 156.60 area and the 100 and 200 hourly moving averages near 156.80.