GBPJPY Analysis – The Market Rises Towards the 167.810 Resistance Level
GBPJPY rises towards the major resistance level at 167.810. The price last attained this price level on the 8th of June 2022, but it received a strong rejection from the resistance level. This led to a plunge in the market that brought it back to the major support level at 159.680. However, the price didn't waste much time as it rose immediately towards the resistance level for a rematch.
GBPJPY Key Level
Resistance Levels: 167.810, 170.570
Support Levels: 163.000, 159.680
GBPJPY has successfully transitioned from a sideways movement to a rise above the anchor price level of 159.680. The only seemly setback was when the bears attacked the market on the 12th of May. The price slipped below the anchor support at 159.680, but it quickly finds a landing platform at 156.030, from where it recovered and forces its way back above the anchor level.
Apart from the setback of plunging below 159.680, the market is adjusting to the new price situation above the key level. GBPJPY is seen to have commenced a ranging pattern. The 167.810 significant level is now acting as resistance to the further upward movement of the price, while 159.680 remains a solid support. The latest market adventure in which the currency pair rises to the resistance level is likely to result in another fall as the price is suffering from rejection again.
There is an expectation that the price will continue in consolidation. The 4-hour chart shows the price failing at the 167.810 resistance and falling immediately. The Stochastic Oscillator lines have plunged to the oversold border, while the RSI (Relative Strength Index) has fallen to the mid-level. Both indicators signal the beginning of a downtrend. The next stop of the market in the downtrend is 163.000.
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