GBPJPY key Zones
Resistance Zones: 156.570, 160.000
Support Zones: 148.830, 144.700
GBPJPY Confronts Rejection
GBPJPY is set to face rejection at 156.570 resistance level which coincides with the upper border of an ascending parallel channel. The market began its upwards movement in the parallel channel last year on the 19th of March 2020. It has since taken turns in spending time at either half of the parallel channel. It lasted till the 14th of September 2020 in the upper channel after which it faced rejection and dropped to the lower half of the channel. By the 5th of February 2021, the price was ready and rose steadily into the upper half of the ascending channel.
GBPJPY has now reached the upper border of the ascending channel for the 3rd time in this session of its upper half activity and is set for rejection. The price could fall and gain support from the dividing half to continue its upper half gambit or it could fall further to begin another session at the lower half of the ascending parallel channel.
If the bulls remain strong-willed though, they could rally together to finally break 156.570 and break out of the parallel channel to reach 160.000.
What to Expect After GPBJPY Rejection
At present, all indication attests to the rejection of GBPJPY. On the daily chart, the 5MA (Moving Average) which has been a support for the candles is gradually switching to the upper part of the current candle in a bearish tactic. The Stochastic Oscillator is already plunging from the overbought region to confirm downward movement in the market.
The market is seen to be bearish on the 4-hour chart as well. This is evidenced by the plunge of the 5MA. However, there is a retracement happening and hence a little upward bend to the tip of the 5MA. The Stochastic Oscillator has gotten to the oversold region and moved back upwards to reflect the retracement.
GBPJPY is expected to continue its descent, but the current retracement might be just what the bulls need to rally back to break 156.570.
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