Helped by the strength of GBP
The GBP is the strongest of the main indices today and this strength is also reflected in the GBPJPY.
Yesterday, the momentum could not be maintained once again and the price fell below this moving average level. However, the 100-hour moving average maintained support yesterday and today (currently at 134,224) and the price moved faster upwards.
The rise has now brought the price above the 38.2% retracement of the drop from the June 5 peak at 134.795 AND a trend line above 134.97. These levels are now risk levels for long-term investors looking for more upside.
On the upper plane, the 50% retracement of the same lower movement is 135.736.
Overall, the pair is leaking both its 100-hour moving average and its 100-day moving average. It’s bullish. The price exceeded its 38.2% retracement. The price has gone above a higher trend line. Bullish.
Certainly, there is more work to be done with the 50% retracement at 135.736, the next hurdle on the hourly chart.