Like the USDJPY, the GBPJPY is sharply lower after Bank of Japan’s Ueda hinted of tighter policy in 2024 if inflation does not move back to the downside.
Technically, the news sent the price tumbling below its 200-bar moving average on the 4-hour chart. That moving average had been holding support earlier this week. The fall then sent the price below the 38.2% retracement of the move up from the early October low at 184.609, the 100-day moving average at 183.741, the 50% midpoint of the same move higher at 183.362, and the 61.8% retracement at 182.114.
The low price bottomed at 180.899.
That low stalled within a swing area between 180.707 and 181.006. The swing area goes back to mid-September and extends to the end of October. There were several swing lows and highs within that area.
What would give the buyers more confidence that the low is in place?
In this video, I outline the technicals that would give the buyers some hope that there would be more corrective/profit-taking after the shortfall today. CLUE: The clues come from the 5-minute chart. Watch to find out.
This article was written by Greg Michalowski at www.forexlive.com. Source