GBPJPY Analysis – Price Drops Lower but Takes a Break at 152.580
GBPJPY drops lower as it keeps sliding down from a channel. A downtrend effectively began as the market hit a price bulwark at 157.890, which is a 5-year market high. GBPJPY began to fall under the weight of bearish pressure, making lower lows and higher highs as it drops. It can be observed that there was a free fall in price from the 155.150 level, after which the market finds respite at 152.580.
GBPJPY Significant Zones
Resistance Zones: 157.890, 156.000, 153.500
Support Zones: 152.580, 151.970, 149.640
The market can be said to be suffering from general depression. This is as a result of bullish weakness after the price has sprung up strongly from the 149.640 support level. Several consecutive bullish candlesticks on the daily chart are a confirmation of the strong movement in the market. Price only drops for a pullback twice before it reaches the 5-year high at 157.890.
Since hitting the 5-year high, price was rejected and drops lower, initially through a channel, then it broke lower in a free fall. But at the key level of 152.580, the bears have been halted. And more resistance is to be met further downward at a critical level of 151.970. While the MACD (Moving Average Convergence Divergence) shows the degree of bearish activity in the market, the Stochastic Oscillator signals an imminent rise in price from the oversold region as there is now a golden cross of its line upward.
In the short term, price can already be seen to be ranging between the key levels of 153.500 and 152.580, and this is set to continue for a while yet. The price has currently bounced off of 152.580 and is moving upward again. The Stochastic Oscillator, however, tells us that bearish pressure is persisting and the market is looking like it will break towards lower support levels.
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