GBPJPY Analysis – Bears Are Looking To Reclaim the Market
GBPJPY bears are now looking to reclaim the market after bullish strength was cut off at the 167.810 resistance level. The price then experiences an abrupt slump to the 159.680 significant support level. The price started another attempt from the same support level, but bears met the market with a stronger opposing force at 164.000. This led to the second crash back to 159.680.
GBPJPY Significant Zones
Resistance Levels: 167.810, 165.780, 164.000
Support Levels: 159.680, 158.060, 151.000
Buyers demonstrated their vigor when the market bounced off a major support level at 151.000. This led to a strong upward surge in which the price rose almost 10% within the space of 20 trading days. The market suddenly lost steam and slumped downward. It took a solid key level at 159.680 to limit the drop in the market. This support level, thereafter, acts as a reviving zone for the bulls.
The market can leverage the support from the 159.680 significant level to punch further higher. However, by this point, the bears have grown stronger and have more market influence. Therefore, each attempt to continue the bullish momentum is met with stern opposition at resistance levels. Despite the price crash, the support remains strong, also solidified by the MA period 50 (Moving Average).
The 4-hour chart shows a definite downtrend in the market from the 167.810 resistance level. This downtrend is halted at the support level, but the MACD (Moving Average Convergence Divergence) lines below zero show the bears remain active. Also, the MA period 50 has lined itself up above the daily candles to beef up the pressure. The strong support level will remain in opposition to the bears, which is likely to cause a ranging market above the level.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
Leave a Reply