GBPJPY Analysis – Price Finally Breaks Through the 158.060 Resistance Zone
GBPJPY finally breaks through the weekly resistance level at 158.060. Market sellers thought they had hijacked the currency pair due to its last failure to break through the resistance. The price slumped down and fell below the 153.280 significant level, which is the neckline of a double top formation. Buyers demonstrated their resilience by preventing a drop to the 149.500 support level. Instead, at 151.000, the price reversed.
GBPJPY Key Levels
Resistance Levels: 161.650, 160.040, 158.060
Support Levels: 153.280, 151.000, 149.500
The attempt by the market to break the 158.060 resistance to reach higher levels has been a long time coming. The first recent major attempt came on October 21st, 2021, when bulls charged up out of consolidation only to be firmly rejected at the 158.060 resistance. Another attempt followed after the price bounced off the critical support level at 149.500, but the market could not find a way through.
GBPJPY remained bullish, though, and this time, the price rebounded off 153.280 for yet another unsuccessful attempt. Sellers try to drag the market towards the previous key support. But the bulls recovered at 151.000 and attempted another powerful surge. Finally, the price breaks the 158.060 supply level and rises to 160.040. The EFI (Elders Force Index), with an upwardly protruding power line, shows that the bulls dominate the market.
The price has finally risen to 160.040, a 6-year market high. GBPJPY is currently taking a breather after an extensive 6% rise. The 4-hour chart shows that the price is retracing to the 160.040 level and possibly dropping below. The bears could yet highjack the market to undo much of what has been achieved. But buyers have more than enough in the tank to take the price to the next level at 161.650. The Parabolic SAR (Stop and Reverse) still signifies an uptrend.
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