Market Analysis – GBPJPY buying strength appeared to be dissolved close to the 168.440 market level
GBPJPY buying strength dissolves close to the 168.440 key zone. The growth in purchasing power that has been observed over the last week appears to be slowing. Last week, the bulls were extremely fortunate in pushing prices a fraction higher above the 161.120 key zone. The buyers made solid progress by breaking out the descending triangular pattern. Last week we got to see a strong, solid candlestick open. This gave us a strong indication that buyers are now in charge.
GBPJPY Market Levels
Resistance Levels: 168.440 161.120
Support Levels: 155.930, 148.840#
The Bolinger Band indicator also confirmed a short squeeze, which eventually led to a sudden breakout on the daily chart. As the buyers continue to progress, the selling traders also begin to look for an opportunity to disband their gain. The buy traders were unfortunate in pushing the price trend above the 168.440 market level. The key level has been a forest for the bullish market to penetrate. The bullish action, therefore, made a stop below it. This week has opened up with bearish forces now dominating the daily chart.
The bear market is now inclined to devalue the market as we continue to see it progressing downward. The Stochastic Oscillator indicator shows a selling opportunity as sellers are now pushing price values lower in the market. The MACD (Moving Average Convergence & Divergence) indicator is gradually declining despite still showing that the buyers were previously in charge. This, therefore, happened as a result of buyers being dissolved before the buying rally back to the 168.440 key zone. A more significant fall is still anticipated on the GBPJPY daily chart.
The bears are charging the price activity downward even though the buyers had earlier caused price expansion. The MACD indicator is also seen to still decline, confirming the presence of bearish interest in the GBPJPY market. The more selling display should be anticipated down to the 161.120 order block in the coming days.
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