GBPJPY breaks higher and away from MA levels

Technical Analysis

The GBP is the strongest of the majors

The GBPJPY has broken higher along with the other GBP pair. The pair is up about 0.6% on the day. The climb has seen the pair move back above – and away – from its 200 hour MA (currently at 153.116). The pair is also trying to move away from a ceiling area between 153.678 and 153.789. That area had confined the upside moves since November 4 (see red numbered circles).

The next upside target comes in at a downward sloping trendline that cuts across at 154.22. Above that level and the 38.2% retracement of the move down from the October 20 high comes in at 154.588. Getting above that level is the minimum retracement needed to start to tilt the bias more in the direction of the buyers. Absent that and the correction is simply a plain-vanilla variety.
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