Overall Bearish Trend of GBPJPY Faces Correction
GBPJPY faces correction after a downward whipsaw in the marketplace. The month of November was a bearish month. The market experienced an obvious trend reversal in October. This relative strength index on the daily chart was very clear, showing that the market was in an overbought region. This was further confirmed by the cross of the nine and twenty-one Moving Averages on the daily time frame. Without much hesitation, the price dipped after the cross of the 2MA's till 152.350.
Market Important Zones
Demand zones: 148.950, 152.350
Supply zones: 153.550, 156.150
The new bearish trend faced correction immediately and rose beyond the 153.550 supply zone. The correction in the market was a manipulation that could have produced a long-term negative bias. The Moving Average, however, did not confirm the likely expected trend reversal at 153.550. The 9 and 21 MA's did not cross facing upward.
The bears purged the market once again, driving the market to the 148.950 demand zone. The heavily defended zone at 148.950 has been tested about five times since April. Once again, it was successful in preventing a further crash in the market. GBPJPY faces correction once again, which seems to be an accumulation of energy, as it did earlier, violating the 152.350 demand zone.
The current retracement is expected to be followed by a bombshell. This is expected to violate the long-term defended demand zone at 148.950. The market is currently hanging on the 152.350 zone. The RSI is about to cross into the overbought zone. This may be accomplished between the 153.550 and 152.350 zones. The range between both zones would be safer, for lower-risk entry. This is expected to continue the correction in the overall bearish trend.
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