Key support target slows the fall
The GBPJPY has moved lower today as traders move into the relative safety of the JPY on the stock declines. The GBPUSD has not fared all that well either.
The price decline has taken the pair down to test its 200 hour moving average (green line in the chart above) at 140.625 currently, and the 50% retracement of the move up from the August 21 low at 140.472. The low for the day did crack below the 200 hour moving average but found support buying right against the 50% level (low reached 140.47).
The last 2 hours have seen traders leaning against the higher 200 hour moving average level. We currently trade just above that level at 140.714.
Close risk for shorts now would be the 141.00 level. That level corresponds with swing lows from August 31, September 2, and earlier in today’s session. After the market broke below the level, the high corrective price could only get to 141.049 before rotating with momentum back to the downside.
On the downside, getting back below the 200 hour moving average and 50% retracement are the obvious key targets to get to and through (and remains below).