GBPJPY Analysis – Price Breaks From the Bearish Trend With a Price Upsurge
GBPJPY breaks free of bearish pressure with an impressive price surge from the 149.640 weekly support. Before the price breaks out, it shows tendencies of agitation by testing the weekly support at 149.640 with just its wick. A strong upward push to 151.970 was ensured. A pullback gave the market enough attacking space to hit hard against the resistance, which finally led to a strong bullish market pump.
GBPJPY Significant Levels
Resistance Levels: 151.970, 157.890
Support Levels: 149.640, 151.500
GBPJPY entered into March 2021 on a bullish spree. It was not until 151.970 that price started experiencing resistance to curtail the bullish outbreak. This caused the price to drop to the support at 149.640. This support price level would go on to play a vital role in ensuring that GBPJPY doesn't lose price beyond this level. The 151.970 key level was likewise used by sellers at different times to enforce resistance and confine the market.
From the 16th of August, it eventually boiled down to a market consolidation between these two key levels. Buyers eventually come out on top as price breaks past the 151.970 resistance level to surge past several key levels to reach a 5-year high above 157.890. The ATR (Average True Range) indicator shows that upward momentum began to build on the 16th when the price fell below 151.970. It continued building till it culminated in a breakout. However, momentum has begun to wane over the last three days.
On the 4-hour chart, the price can be seen reacting to the 157.890 price level. Essentially, sellers have begun to tire out after price breaks through 156.660. A retracement back to this level, however, lifted the market to the next level at 157.890 where the market has not been agitating. This is represented as a drop-in active bullish momentum by the ATR indicator. The RSI (Relative Strength Index) has its signal line also fluctuating around the oversold border.
GBPJPY may have to pull back again to 156.660 to push it further upward to the next target of 159.700.
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