GBPJPY Analysis – Bears Push Down Hard Against the Market
GBPJPY bears have systematically taken over the market and are increasingly pushing hard against the market. The market entered the month of February 2021 on a bullish run. The momentum of prices was gradually reduced starting from the 24th of February 2021. Price started to undulate but still on an uptrend.
By the 27th of May, GBPJPY hit the 156.000 resistance and the price could go no further upwards. Instead, the market began moving down gradually with the sharp fall-and-rise of the market intercepting the gentle downslope. The sharp fall-and-rise in price occurred on the 18th of June and the 8th of July 2021. The 9MA (Moving Average) has fought to stay on top of the candlesticks since price began to fall from the 156.000 resistance. This shows the bearish intent of the market.
The MACD (Moving Average Convergence Divergence) also confirms that the market is under bearish pressure. It started showing the bearish histogram bars on the 4th of July up till today. Its signal lines have also moved beneath the zero point.
GBPJPY Key levels
Resistance Levels: 156.000, 155.150, 153.500
Support Levels: 151.970, 149.640, 148.072
The market has gotten to the confluence of the ascending trend line and the new downslope. The past 12 hours have seen the market increasingly bearish on the 4-hour chart. Three consecutive bearish can be seen. However, the last candle was a spinning top candle, which shows market indecision. This is as a result of the buyers who are struggling hard to ensure the market does not fall further.
The 9MA is still very much in support of a market slump. It remains above the past two candlesticks. The MACD has now shown three consecutive bearish bars, and its signal lines have crossed each other to move lower.
The market is likely to bow to the pressure of the bears and fall to the 151.970 support before falling lower.
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