GBPJPY Analysis – Despite the Potential Turnover, Buyers Remain Active
GBPJPY is still ready to refill the 169.080 market zone. The buy traders are considered to be supplying more buying strength on the currency pair. As a result, buying liquidity is expected to last for some time before a change occurs with the arrival of prices in the 168.080 key zone. The buyers are ready to refill upward, but the 268.080 key zone could play into a price tendency downward. With the price setup back in the 168.080 keg zone, the parabolic SAR (stop and reversal) trend indicator is now projecting a positive slope.
GBPJPY Market Levels
Resistance Levels: 169.080, 163.980
Support Levels: 159.680, 154.450
The bulls made a strong advance in late September by changing the trend after the expansion moment from the trend line channel. After several months of consolidation, the seller released selling coercion before a final break below the 159.680 significant level. Before the currency pair trend changed, there was a price movement close to the 154.450 market level. Sellers at this stage were reluctant to push further, hence, making it easier for buyers to set up at the 154.450 market level.
The bulls picked up strength as the pound market appeared stronger against the yen market. However, this resulted in more buying liquidity trades until the price rallied above the 169.080 key zone. The most recent phase shows a pullback to the 163.080 key zone. The buyers are still willing to push the price back up to the 163.080 key zone on the daily chart. The RSI ( relative strength index) on its side doesn't give much hope for buying activity, and this may mean that sellers could penetrate at any moment.
The buyers are trading upward as the price continues to rally back to the 168.030 key zone. The RSI is also climbing forward on the 4-hour time frame. However, buying power could be exhausted at any time as sellers could turn the price around.
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