GBPJPY Buying Pressure Exhausted as Price Reaches Extreme High

GBPJPY Analysis – Buying Pressure Gets Exhausted As The Price Becomes Extremely High

GBPJPY buying pressure gets exhausted as the price becomes extremely high. The market has reached an overbought status, according to the RSI (Relative Strength Index) indicator. As the price struggles to keep up its positive trend, the buying pressure also appears to have worn off.

GBPJPY Significant Zones
Demand Zones: 154.710, 148.630
Supply Zones: 169.090, 175.020

The market’s overall trend is bullish, as indicated by the Moving Average. A discount array’s impact on pricing has led to the bulls’ market dominance. At the 159.430 price level, the discount array had an FVG (Fair Value Gap) below it. The FVG developed after prices jumped from the demand zone at 148.630. The market had been in a downturn before the rise and complete reversal. The last week of September 2022 saw a market-wide bullish uprising that caught GBPJPY sellers off guard.

GBPJPY then proceeded to rise after the creation of the FVG. The price saw a significant bearish push as it hit the 169.090 resistance. GBPJPY experienced a protracted lower collapse. However, as soon as it attained the psychological level of 156.000, the general trend—an uptrend—began again. According to the RSI indicator, the price has not reached the oversold region since the start of the year 2023. The price rose to the current level recently due to a market bounce from a bullish order block.

Market Expectation

The market’s structure is also bullish on the four-hour chart, as breaks of structures keep occurring to the upside. As the uptrend continued, a relatively equal low formed at the 171.200 support level. GBPJPY will likely dive down to invalidate the low before the uptrend continues.