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GBP/JPY rebounds further to test technical levels this morning

Since June this year the GBP/JPY has met with three very distinct spikes lower. If you look at a daily or weekly chart you will see what I am talking about here. The first two of those was followed by a rise to fresh multi-year highs. The last of those three sharp sell-offs occurred only recently on Thursday last week. The GBP/JPY was caught up in the sharp slide on the USD/JPY and fell to a low at 178.66. The 2023 high was set November 24, at 188.66. So, as you can see that was an exact 1000 pip fall from the top to the bottom. It was already on the rebound later last week and it has extended that recovery today. The GBP/JPY has reached a rebound high so far today of 183.72, after closing on Friday at 181.90. If we are looking for potential rebound objectives, we can see that it has already surpassed the 38.2% recovery point and just now made it past the 50% point, at 183.66. The 100 day moving average is also not far above the high seen so far today. That is in place right now at 183.79. So, does that mean it is now reached a technical congestion zone? Well, that is possible and we shall have to wait and see if that is the case. One thing I can say; is that anyone looking to hedge long GBP/JPY exposure just got considerably better levels that looked likely at one stage last week. The GBP/JPY is currently trading at 183.69
 

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