High volatility on the GBP/JPY

On the daily chart of the GBP/JPY we can see that this Monday’s session was very volatile, but indecisive. The long shadows in both directions on today’s daily candle is telling us that the pair tried to break above the 55 day EMA (purple line), but at the same time it tried to bounce from that moving average to the downside. At the end of the session, the real body of the candle closed around the opening and that is an indecision signal around the 146.91. To the upside, the 200 day EMA (blue line) at the 148.16 level could act as resistance. Above that moving average, its next resistance could be the 151.00 level. To the downside, the low at the 143.20 level could act as support.