First break below the levels since August 25
The GBPJPY is falling below an upward sloping trend line, the swing low from yesterday and earlier today at 141.32 AND the 100 hour MA (blue line) at 141.256. The move below the 100 hour MA is the first look below the level since August 25. Risk for sellers looking for more downside probing is now that area between 141.256 and 141.34 (broken trend line level). Stay below that area keeps the seller in control.
The next downside target comes in at the 38.2% retracement at 140.999 (call it 141.00).
The highs today was a precursor for the recent bearish break. The Asian high and the early NA session high were near swing highs from Monday and Tuesday’s trading (see green numbered circles). The inability to move above that “yellow area”, showed sellers leaning against resistance. They were eventually joined by other sellers (may have been longs getting out).
