GBPJPY moved above a key swing area but rotated back down
The GBPJPY moved to the highest level going back to December 2015 in trading today. Looking at the weekly chart, in extending higher, the price moved above a swing area between 174.83 and 175.475. The high price reached up to 175.75 in the early European session before rotating back to the downside.
Drilling to the hourly chart, the price moved back below the low of the aforementioned swing area at 174.83, and the swing high from early June (broken on Friday) at 174.678. The low price reached 174.337 while the 100-hour moving average was 174.34. Buyers leaned against the moving average, and have rotated back toward the 174.678 level. The high price bounce has reached 174.63 so far.
Going forward it would take a move back above 174.678 (see green number circles) and 174.83 to give the dip buyers some added confidence.
Conversely, a move below the 100-hour moving average without traders looking toward the 200-hour moving average is 174.04 (and moving higher). They will back below the 200-hour moving average would likely lead to more downside probing in the pair.
Last week, the price bottomed at 172.656. That was between a swing area at 172.515 and 172.766 (see red numbered circles on the chart below). If there is more momentum selling below the 200-hour moving average, and the price stays below that moving average, moving down toward that swing area would be the next major target.
GBPJPY on the hourly chart