GBPJPY Analysis – The Market Is Set to Decide on Price Direction
GBPJPY is set to make a decision on which direction to follow. Buyers have been stopped in their tracks despite climbing above the 159.580 significant level. Furthermore, the pressure has been put on the market such that the 159.580 significant level was breached. Buyers haven’t lost out totally on the market and have maintained influence. As a result, the market hangs in the balance and is set to move either way.
GBPJPY Key Levels
Resistance Levels: 1.67810, 1.64000, 161.560
Support Levels: 159.680, 156.030, 151.000
During the one-year consolidation between the 149.500 support level and the 158.060 price level acting as resistance, the market stored a lot of momentum. This results in the buyers taking advantage of the opportunity to influence the market from the 151.000 support. Therefore, the market skyrockets with much volatility, breaking past several key levels, including the strong 158.060 resistance level.
The currency pair then ascends above the 159.680 order block, takes a retest of the level, and pushes further upward. At this point, the sellers interrupted the upward flow of the market using an ally at the 167.810 critical level. This weakened the buyers severely and allowed the sellers more visibility to wrestle for the market. In all of these, market volatility and agility remain on the rise, as shown by the ATR (Average True Range) indicator.
The 4-hour chart shows that price consolidation is currently ongoing directly at the 159.680 level of the market. The price is tapering off through a triangle system. And as the currency pair is about to reach the tip of the triangle, GBPJPY is set for a breakout on either side of the triangle. The MACD (Moving Average Convergence Divergence) indicator does not give too much away as to the definite direction of the market, but there is more weight to the downside, and that will mean reaching 153.280.
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