GBP/JPY has been consolidating since the start of the week, retracing some of its losses back to the 38.2% Fibonacci level and lingering just below the 173.50 handle. Now it’s about to test resistance at the SMA 100 and 200 too.
Reversal candlesticks around the area could hint at the continuation of the downtrend. However, be wary of a close above the SMAs as it could mean the start of an uptrend.
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