GBPJPY Buyers Display Resilience Against Persistent Selling Pressure

Market Analysis – Buyers Could Deepen their Conviction 

GBPJPY buyers display resilience against persistent selling pressure. GBPJPY buyers have exhibited strong resilience in the face of persistent selling pressure that has been weighing on the market for weeks. As we enter 2024, the market has experienced a notable flow of liquidity, indicating an active trading environment.

GBPJPY Key Levels

Resistance Levels: 189.000, 190.000
Support Levels: 180.220, 178.470

The British pound against the Japanese yen has weakened over an extended period. This is because buyers struggled to make a breakthrough at the significant level of 189.000. However, sellers managed to break through the key level at 184.150, leading to a downtrend. By late 2023, they had successfully breached the price zone of around 180.220.

However, as the market approaches the hot zone near the significant level of 178.470, buyers launch a surprise attack. In January, they pulled the strings and may be gearing up for a more serious offensive. The current reaction from buyers suggests a potential increase in market liquidity, particularly in the daily chart time frame.

The momentum indicator is currently on the rise, signaling a stronger response from buyers. However, the Stochastic RSI (Relative Strength Index) has yet to show a clear direction. The signal line has not provided a definitive indication. Nonetheless, the bulls putting up a fight are prepared to build on their momentum with a stronger pull.

Market Expectation

If buyers continue to gather strength, it is possible to see a breakthrough close to the significant level of 184.150. This would mark a significant shift in market dynamics and potentially create opportunities for further upward movement.

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