GBPJPY shows some technical disappointment

Technical Analysis

The GBPJPY is trading lower for the second consecutive day after the high price from yesterday stalled against the swing area/ceiling between 157.42 and 157.766.

Today, the pair moved below a old ceiling/floor going back to December 31 between 155.918 and 156.06. The price is currently trading within that swing area after running to a low of 155.449 earlier today. That was the lowest level since January 4.

If the price can hold within this swing area and restart a move to the downside, that would give the sellers more confidence for a push toward 154.86 (swing low from January 3 (and low for the year), followed by the 38.2% retracement of the move up from the December 20 low at 154.618

Conversely move above the swing area now and traders selling on the break will likely be disappointed. I would expect that they would start to look back toward the 156.60 area and the 100 and 200 hour moving averages near 156.80.

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