Or is a bearish breakout coming?
It’s been a wild ride in GBP/JPY over the last month or so and it may only be about to take off.
From long-term consolidation to finally breaking higher—and in impressive fashion—to a sharp reversal after the BoE bottled raising rates. It’s been quite the month and there’s still plenty of action to come.
The pair now finds itself between two very interesting levels that may hold the key to the next surge.
To the downside, it’s last weeks' lows around 152.50, where the 61.8 fib—September lows to October highs—coincides with the 55/89-day SMA band, maybe even the upper end of the 200/233-day SMA band. As long as the pair remains above here, it’s in bullish territory.
To the upside, it’s Tuesday's highs around 154.75 where the 61.8 fib—3 Nov. highs to 11 Nov. lows—coincides with the 200/233-period SMA band on the 4-hour chart.
A break in either direction could tell us a lot about the path of travel in the coming weeks.