GBPJPY falls to swing area and 50% retracement of recent move higher. Buyers enter.

<p>In my last <a href="https://www.forexlive.com/technical-analysis/the-gbpjpy-dips-to-the-100-hour-ma-and-pauses-can-the-price-break-below-20231116/" target="_blank" rel="follow">technical post on the GBPJPY last week</a>, I spoke about the importance of the 100-hour moving average. That moving average has been a point of support (and resistance) going back in time as a market trended to the upside.</p><p>Don Friday, the price fell below that 100-hour moving average and then used that moving average as resistance before moving sharply to the downside testing the 38.2% retracement and bouncing higher into the close of the week.</p><p>Today, the price high moved up to the underside of the broken trend line and rotated back to the downside. The price fell below the 200-hour moving average and continued the run lower in the European/early US session. That run took the price to the 50% midpoint of the range since the October 30 low AND also to a swing area between 184.51 and 184.66.</p><p>That dual support target did find support wires and the price has rotated back toward the broken 38.2% retracement at 185.403.</p><p>What next?</p><p>Move above the 38.2% retracement and traders will look toward 185.87 – 96 area.</p><p>Conversely, hold resistance against 185.40, and rotated back toward the 50% retracement and swing area near 184.51 – 66 would be the major target</p>

This article was written by Greg Michalowski at www.forexlive.com.