GBPJPY Analysis – Market Makes U-Turn to Plunge Downward
GBPJPY price is Set to trade downhill as the market makes a u-turn following a hit at the upper trend channel. The bulls have been on a great run for the past few weeks, with the buying strength increasing progressively. Upon price closure at the upper trend channel, the sellers are already opening opportunities and this could be a result of pending orders above the upper trend channel. This can therefore put a stop to the bullish liquidity flow and thereby cause bearish displacement to be seen on the GBPJPY price. Traders should therefore be alert for a bearish drop on the daily chart time frame.
GBPJPY Market Levels
Resistance Levels: 168.120, 160.730
Support Levels: 156.240, 149.020
The bull traders gathered enough momentum after the price plunged in September. The currency pair has been bouncing between the downward trend channel following buying activity from 156.240 key zone in May 2022 to 168.120 key zone. The market has since then been sustained in a descending channel. As of September 2022, the sellers traded price value with strong momentum, which eventually broke down beyond the 156.240 key zone.
As the sellers decided to trade with sharp liquidity volume, the buy traders decided to follow the same route by filling up the liquidity void created by the sell traders. Price momentum is currently held back from riding up to the 168.120 key zone as buying strength stops at the upper trend line. The Chaikin Money Flow is gradually declining as sellers begin to set up price moments on the daily chart.
Buyers are still reacting to the upper trend line, which is acting as a strong price resistance at the moment. The RSI (Relative Strength Index) on the 4hr chart shows buying strength has come to a close as a cross is seen in the upper region. The Chaikin Money Flow Index also shows a price drop in buying momentum. The sellers are more likely to set price orders down to the lower trend line in the coming days.
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