GBPJPY Analysis-Market Weakens as the Price Yield Lower
GBBJPY weakens as the price yield lower making it dive back to its old low. The market action is planning to make its dive back to its lowest low in 2021 following a price blow on the pound market. A negative retraction has been observed after the price failed to ride back to the 168.110 key zone. The Average Directional Index (ADX) indicator is on the rise as we get to see more selling experiences as the price trend continues to rise. Price is thus inclined to price moment down to the 149.000 key zone on the daily chart as market influence weakens.
GBPJPY Trade Levels
Resistance Levels: 168.110, 160.750
Support Levels: 156.270, 149.000
Following positive traction to the 168.110 key zone, bearish power demonstrated its leverage on the Geppy market. The price couldn’t push further and therefore extended into the price trending channel. For a few months, the Geppy price swings inside the descending channel.
As was the case with last week’s price movement, the bears were able to drive the price trend lower as liquidity flowed downward first, breaking through the 160.750 key zone. The sellers broke this market zone without looking back. They have also overcome the supporting ground at 156.270, the key zone. The buyers are currently aiming to hold the price level close to the 156.270 support level before the bearish purge continues. The Price Volume Trend indicator shows the price liquidating downward.
The 4hr chart shows how GBPJPY weakens as the Moving Average indicator shows a bearish trend. The bulls have gone ahead and retested the 156.270 key zone. However, the Moving Average crossing is still open to more exploration as we anticipate the price trend to hit back to the 149.000 key zone. Once the bullish hangout is over, traders who are willing to sell more can ride in with the flow as bearish composition is bound to hold down back to the old low.
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