Market Analysis – GBPJPY Aims to Surpass the Year’s High After Bulls Bounced off of 151.300
The GBPJPY bulls bounced off the 151.300 key level to maintain their upward momentum. The British pound sterling has been strengthening itself against the Japanese Yen since the turn of the year. Just like in previous times, the market has recovered after a major dip in price and is set to scale at a new height.
The first major dip lasted for 9 trading days. It occurred from the 11th to the 24th of March 2021, after which the price recovered to bounce to a new year’s high at 153.400. The second dip lasted for 14 trading days. It spanned from the 6th to the 23rd of April 2021. GBPJPY thereafter recovered to bounce to 154.500. The price consolidated for a while and then the bulls pushed it further to 156.100.
For the third time this year, the market has faced a major dip, but this time it has lasted a bit longer. The market fell to 156.100 and the retracement lasted for 16 trading days. It took 151.300 support to defend the price and push it back upwards.
GBPJPY Significant Zones
Resistance Zones: 158.000, 156.100
Support Zones: 153.400, 151.300
GBPJPY has now embarked on a strong bullish drive after bouncing up from its 151.300 support. In a bullish engulfment, the market has produced three strong bullish candles. The Parabolic SAR (Stop and Reverse) has displayed a dot under today’s candle to confirm a definite change in market direction from bearish to bullish. The RSI (Relative Strength Index) has risen straight up and is now at 55.84, indicating that the bulls are in control.
GBPJPY Market Anticipation
The market is climbing up an ascending trend line on the 4-hour chart. The market had bounced up from 153.400 and then 154.500 on its ascent, and both the Parabolic SAR and the RSI indicators confirms its strong bullish activity. GBPJPY is expected to surpass the year’s high and reach 158.000.
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