Market Analysis – 153.500 Supply Zone Rejection Makes GBPJPY Fall
GBPJPY falls after being rejected at the 153.500 Supply Zone. The upwards trajectory of the GBPJPY has been normalized starting from the 23rd of February 2021 to follow an ascending trend line. The key levels remain influential as the price moves along the trend line.
On the 25th of February, the price faced rejection on getting to 149.640, to which it falls to the trend line support to rally past to the next resistance. The next resistance was at 151.790. It also did the same thing by knocking the price down, and the price also falls to the trend line support. Though it took a bit longer, the price rallied again to move past the resistance.
GBPJPY received support from 151.790 to test the next resistance at 156.000. As at times before, it was rejected and also found its way to the trend line support. However, unlike other times, the price has not found it easy to make it back up. A barrage of resistance lines has contrived to make it difficult for it to reach and move past 156.000. Firstly, 155.500, then 153.500 had taken turn knocking the price down.
Since the fall in price from 155.500, the 9MA (Moving Average) has been giving bearish signals from the market. The Bollinger middle line also moved above the daily candlesticks in a bearish tactic.
GBPJPY Key Levels
Resistance Levels: 156.000, 155.150, 153.500
Support Levels: 151.970, 149.640, 148.072
On the 4-hours chart, the market has been knocked down from 153.500 with a long bearish candle. The market has not fallen to the trend line yet, rather just like with 155.150, the lower border of the Bollinger Band is acting as support to keep the market up. Meanwhile, the 9MA is still showing market bearishness.
GBPJPY is expected to rally up to break past these resistance lines and also overcome the 156.000 key level, but if it gets knocked down again, the price could break out of the ascending trend line to go lower.
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