GBPJPY Analysis- The Price Is Open for Bearish Continuation Amid a Pullback
GBPJPY is likely to fall again following a price retracement to the 167.850 key zone. Although what the market is currently experiencing is a pullback from a bearish setup, buyers have been dominant since the opening of this week, although so many indicators have proposed selling action on the daily chart. Selling pressure is registered on the RSI (relative strength index) and the MACD (moving average convergence and divergence) indicators. Traders can therefore stay alert and set themselves up for a selling tendency in the coming days.
GBPJPY Key Levels
Resistance Levels: 167.850, 163.500
Support Levels: 159.500, 152.350
The GBPJPY has evolved in stages throughout the year 2022. Market markers have caused such a large change in price tendency. The buyers previously dominated in the first quarter of the year before the currency pair went into consolidation. The weakening US dollar gave the market a glimpse of hope before prices began to consolidate. Towards the last quarter of the year, a sharp decline was seen as sellers took price activity from the 167.850 key zone down beyond the 151.130 key zone.
The buyers later corrected the price movement as the price swung back far beyond the 167.850 significant level. The current situation on the market indicates that sellers are currently dominant, despite pullbacks. The parabolic SAR (stop and reverse) indicator shows the price reaction to a negative trend. This also gives a clear indication of a selling tendency.
The buy traders are causing the price to retreat to the 167.850 key zone. At this junction, the sellers are more likely to engage the market as the days go by. The RSI is also reacting to price setup as buyers aim to retrace back to the 167.850 market level before selling pressure sets in.
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