GBPJPY Analysis: Price Rises as Market Completes the Last Impulse Wave
GBPJPY rises as the market concludes the last impulse wave. The price has been rising alongside diagonal support since January 3, 2023. However, more GBPJPY buyers appear to have stormed the market as the price rises momentarily after the fourth bounce off the diagonal support.
GBPJPY Significant Zones
Demand Zones: 157.220, 148.630
Supply Zones: 163.030, 172.130
On the daily chart, the market’s environment was in a chokey until the last quarter of the year 2022. This was due to the price’s consistent movement between the major resistance and support levels. However, there has been a slight turnaround as the bulls and bears struggle to dominate the market. Following the rejection of the price at the 172.130 major resistance, the GBPJPY made a massive crash to the downside, flipping the market bearish and breaking the previous support at the 163.030 price level.
Throughout the last quarter of 2022, the trend was to the downside. The market’s environment remained bearish until the shift in structure in January 2023, as prices formed higher highs and higher lows. Until recently, the market has been expanding upward in fractals but with relatively low momentum. While being upheld by the diagonal support, GBPJPY continued its uptrend and made a swift rally following the fourth bounce off the diagonal support. According to the Stochastic indicator, the price will likely retrace into the bullish order block below the weak low at 160.390 before resuming the uptrend.
GBPJPY is also bullish on the four-hour chart. However, a retracement to the downside is expected until the price breaks through the previous low at 160.390. The price might also head further down to hit the diagonal support before heading to the upside.
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