GBPJPY Analysis – Bulls Are on a Prowl as Price Breaks Out of Consolidation
GBPJPY Bulls are on the prowl after price violates the consolidation barrier at 151.970. Bulls have used the scuffle with the bears to their advantage, as they edge out the bears to pump the market out of consolidation. Buyers relied heavily on the support level at 149.640 to keep the market from sinking, and there were multiple reprisals of the market at this significant level.
GBPJPY Significant Levels
Resistance Levels: 155.150, 152.580, 151.970
Support Levels: 151.500, 150.500, 149.640
The bulls fought valiantly to repel the market's downtrend, which led to several days of consolidation which commenced on the 13th of August. Bears were very active at the 151.970 resistance level, by which they used to knock down the price on different occasions. However, since price began its uptrend at the beginning of the year, the 149.640 key level has been very critical for price bullishness.
Signs of a market breakout already occurred on the 4th of October when the candlesticks only touched down on the 149.640 support with a long wick to show the agitation in the market. Following that, the price advanced to the key level of 151.970. A brief retracement occurred, then the market surged beyond the resistance. The Average True Range indicator shows that the market's volatility has been gradually rising since the 13th of September, and bulls eventually use that to their advantage to break out.
On the 4-hour chart, the market has broken out and surged up. Market volatility, however, has been tempered as prices approach the 155.150 key level. This is seen as the ATR signal line nose dives. However, the market remains generally bullish, as confirmed by the RSI (Relative Strength Index), whose signal line has grown into the overbought region.
Price is expected to pull back and then continue its bullish prowl to reach its highest point for the year at 156.000.
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