GBPJPY was in an uptrend this week, but turned lower during the European session after weaker than expected preliminary PMI data. The price fell below the 100-hour moving average (blue line on the chart above at 200.77) but found support near the 200-hour moving average and the lower end of the swing zone between 200.41 and 200.825.
After finding support, the pair rose to the highest level recorded last week at 201.60. A break above this level could trigger further bullish momentum, pushing GBPJPY to its highest level since September 2008. Additionally, the price moved above the 61.8% retracement of the trading range since the 2007 high, which It stands at 199.808 (see monthly table below).
Buyers remain in control. The only thing holding back further gains at the moment is the high price since last week. Sellers who think the price has gone too far can rely on this level with a stop above it.
Meanwhile, buyers would like to see a breakout with momentum above this level.