GBPJPY Analysis – The Market Is Expected to Continue Bullishness After a Short Retracement
GBPJPY is expected to resume bullishness after a short retracement. The market escaped the grasp of the sellers when it bounced off the 151.000 price level to break the weekly resistance level at 158.060. Since then, GBPJPY has always been upwardly abounding. There was only one case of retracement later on the 28th of March, in which the price dropped to 159.680 before resuming its uptrend movement.
GBPJPY Key Levels
Supply Levels: 172.330, 170.570, 167.810
Demand Levels: 165.780, 158.060, 151.000
GBP is now winning the battle of the currencies after it has edged past the Japanese yen by breaking upward out of consolidation. The price consolidation lasted two years before the eventual break out on March 22nd, 2022. The loose approach of the yen has allowed for an aggressive rally from pound investors. Since breaking out, the price has risen 6.42% to reach 167.810.
The only major retracement in the price rally came on the 28th of March at 164.000. Other instances were short pullbacks before the price resumed its rise. This can be seen on the 8th, 12th, and 14th of April, 2022. The market, having risen to 167.810, is experiencing a retracement. The Stochastic lines are high in the overbought region. The retracement, though, is expected just to be a short pullback before GBPJPY resumes bullishness.
Like the daily timeframe, the MA period 20 (Moving Average) on the 4-hour chart is below the candles and acts as support. The candles are currently dropping towards the MA support. This coincides with the drop of the Stochastic lines from the overbought region. The GBPJPY is expected to bounce from the MA period 20 to drive towards a new critical level at 170.570.
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