Market Analysis – The 149.640 Support Sets GBPJPY Rising Again
GBPJPY is rising again after another successful redirection of the market at 149.640. Bears and bulls have been locked in a tussle for dominance of the market since the beginning of March this year. Price entered the month of March on a general uptrend, and though bears kept trying, bullish momentum was overall greater. This changed as soon as price hit 156.000 on the 27th of May. Bears started to win as a result of the exhaustion of the bulls.
GBPJPY Important Zones
Supply Levels: 151.200, 153.500
Demand Levels: 149.640, 148.400
From the 28th of May, bears started to plunge the market. This can be seen as price began trading to the downside of the Exponential Moving Average. At this point, bulls became the weaker side and price was falling with more intensity. GBPJPY remained on an uptrend line though price was falling. It was not until the 8th of July that the market finally dropped below the uptrend line with a spike. Beyond that, GBPJPY fell into a free fall. It took the demand level at 149.640 to arrest the fall and turn the market in favor of the bulls.
The price rose to 153.500 before bearish activity resumed. GBPJPY was wrestled away from the bulls through a double top chart pattern to plunge the market again. But the 149.640 support remains at hand to always thwart the sellers’ intention. Price is now rising once again. The market remains, however, in bears’ territory and, as in previous times, the market will rise to a respectful height before the bears kick in again. This could set the market ranging.
On the 4-hour chart, the rising of the market has met a temporary stop around the 150.760 price level. This has been going on for 3 days now, but indications are that price will shake off the opposition to go higher. The EMA period 20 remains below the 4-hour candle, acting as support. There is enough divergence between the EMAs on the MACD (Moving Average Convergence Divergence) to suggest that the market has retained some bullish vigor from its push from 149.640.
Therefore, GBPJPY is expected to arrest its temporary trouble and keep on rising. Price should bypass all hurdles to get to 153.500 before further responses.
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