GBPJPY Annual Forecast – Price Puts Pressure on Yearly Demand Levels
GBPJPY puts pressure on its yearly demand levels as it tapers through a triangle formation. The tapering action of the market started as far back as July 2007, when GBPJPY hit its all-time high at 251.020. Price can be seen to record a lower high as the years drag on. As this goes on, the market maintains a demand zone of between 128.640 and 119.660. From November 2016 to January 2022, the price has been undulating between the demand zone and the 157.240 price level.
GBPJPY Significant Levels
Supply Levels: 157.240, 195.480, 251.020
Demand Levels: 119.660, 128.640, 144.280
GBPJPY Long Term Plan: Bearish
From 2021 to 2022, bulls got pumped to break out of consolidation. Price, on the other hand, is rising to a strong confluence point between the descending trend line and the 157.240 resistance level. This is likely going to be too much of an obstacle for the market to overturn, and as a result, we could see the GBPJPY begin a price decline that will last through the whole of 2022 and into the coming years.
The Stochastic Oscillator signal lines have risen into the overbought region as a result of price bullish moves. We can now expect to see a drop in the market as a result. The MACD (Moving Average Convergence Divergence) also portrays a bullish scenario currently in the market. However, it is also beginning to show signs of price decline as its lines begin to converge. This is also accompanied by depreciating bearish bars.
GBPJPY Medium Term Plan: Bearish
On the weekly chart, the market’s bullish intent is strongly portrayed as it pushes again and again at the resistance level of 157.240. It will take very strong persistence from the market to break through the confluence zone, but the immediate anticipation of the market is a drop back to the demand zone and possibly below it. The Stochastic Oscillator has risen to the overbought zone and its lines are about to converge for a downward cross.
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