GBPJPY Analysis – The Market Commences Consolidation Below the 167.810 Resistance Level
GBPJPY commences consolidation below the 167.810 resistance level. The bulls have been aggressive in overturning the market with a symmetrical triangle system. This resulted in an upsurge with consecutive bullish candles that broke through every key level till it reached 167.810. However, at 167.810, the market has been resisted. This leads to a precipitous drop. GBPJPY is expected to find support at or before 159.680 to begin consolidation.
GBPJPY Key Levels
Resistance Levels: 164.000, 167.810, 170.570
Support Levels: 151.000, 156.030, 159.680
GBPJPY market was in a long-term consolidation between 158.060 as resistance and 149.500 as support that lasted till mid-March. The price broke out when it sprang from the 151.000 support level. The market surged past several key levels to reach above the 159.680 transition zone. The price attempted to stabilize itself above this level, but sellers were pushing the market below. Eventually, GBPJPY dropped below the transition zone.
At 156.030, the market began to trigger a rally. The Bulls began to apply pressure in an upward direction. It took a while and effort, but the bullish set-up eventually helped push the price beyond the transition zone. There was still enough strength to drive to 167.810, but that was how far the price could go before losing steam. An effective price decline started towards 159.680. The Parabolic SAR Stop and Reverse has dots above the daily candles to show the downtrend.
The 4-hour chart shows that as the market descends, there were occasional instances when the buyers were agitating at specific key levels. The market has found a temporarily stabilizing price level at 161.650, from where it is taking a breather. The price is expected to rise upward again in a consolidation movement as the Stochastic line are about to cross upward.
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