GBPJPY Analysis: Price Seeks Lower Lows as the Market Keeps Declining
GBPJPY seeks lower lows as the market keeps declining. After the consolidation phase, the market became bearish and has since been in a bearish environment. The GBPJPY buyers are in total control of the market, as the buyers barely have an opportunity since the change in character to the downside.
GBPJPY Significant Zones
Demand Zones: 148.630, 142.710
Supply Zones: 168.510, 159.730
The market began its downtrend after a deep surge into the liquidity pool. This occurred above the high of the previous consolidation range. Before the breakout that led to the downcast, GBPJPY was typically ranging within the 168.510 and 159.730 price levels. This consolidation phase began due to the difficulty of the buying pressure to break the 168.510 resistance to the upside. As the price gained momentum from the lower low at 151.040, it broke through all resistance until it reached the resistance at 168.510.
The GBPJPY buyers made a move to resume the uptrend, but the buying pressure was insufficient. The bullish order block created on March 18, 2022, was used to propel price to the upside until the market found itself in a ranging market. On June 8, 2022, the price rose to form a double top with the previous high at 168.510. Since then, the market has been ranging between the two significant levels. This continued until liquidity was grabbed from both sides and the market flipped bearish after the buy-side liquidity grab.
The market just invalidated the previous low at the 158.580 price level on the four-hour chart. GBPJPY is expected to either return to the 159.730 supply zone or rally into the Fair Value Gap (FVG) above the 162.330 price level.
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