Looking at the chart of GBPJPY on the daily time frame, we can see that he pair has found a low on the 100MA and rebounded from there. Using Fibonacci retracement, we can gauge that the pair’s first target after the fall from high of 174.8 is the 23.6% Fib level at 166.386, followed by the 38.2% Fib level at around the 168.0 level.
On the flip side, a break and close below the 100ma at around 163.8 will push forward a bearish case and push this pair towards the next major support at 160.0.
Meanwhile, do take note of the news that’s going to come out later today, namely the Services PMI which might have a bearing on where the pair might head next. Previous figure was 58.8 and forecast is an increase to that number to 59.1.
To your trading victory!