Market Analysis – GBPJPY Falling to 149.640 Shows Bears Remain Active
GBPJPY bears remain active and have dealt the market the latest blow to plummet price below the 149.640 key support level. The market has enjoyed something of a revival in recent times after overturning the advances of the bears at the 149.640 support, a zone that buyers have repeatedly used to thwart bearish prowls. However, the price encountered a stumbling block at the 151.970 resistance level. After several days of protests, the price slumped.
GBPJPY Significant Zones
Resistance Zones: 149.640, 148.400, 147.400
Support Zones: 150.500, 151.500, 151.970
A downtrend has been initiated by the bears since the 27th of May 2021. Many activities have occurred from that time to today as the price slid down. The activities include forceful downward spikes, bullish revivals, market reversal candlestick patterns by the bulls, market reversal chart patterns by the bears, several price redirections at the 149.640 support zone, etc. But with all these activities, the bears ensured that the market's downtrend continued.
The current market event is another action by bears to ensure that prices remain bearish. The 151.970 resistance level helped to keep buyers at bay for a long period till the price was knocked down. The EMA period 20 (Exponential Moving Average) is aligned above the daily candles to show a definite downward direction, Having slumped below 149.640, bulls are now reacting. The RSI (Relative Strength Index) has its tip reversing just at the oversold zone border.
The market retested the downtrend line on its way to falling, but the bearish impetus has now been repressed at 149.640 as in previous times. GBPJPY has now bounced twice upwards in the zone. Even though the EMA period 20 remains as resistance for the market, the RSI line has already bounced off the border of the oversold region and is upward abounding, though currently moving sideways. The momentum is currently shifting to the buyers and we could see another surge in price most likely to 151.500.
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