GBPJPY Analysis – Price Weakens at a Monthly Resistance Level
GBPJPY weakens after hitting a solid resistance at the 157.890 price level. The market broke out of consolidation on the 8th of October. Price broke out with such force that there were only consecutive bullish candlesticks until it surpassed 159.660. In climbing up, GBPJPY broke several key levels to reach 157.890. However, as price confronts the resistance line, the market weakens and drops.
GBPJPY Critical Zones
Resistance Zones: 157.890, 156.660
Support Zones: 156.000, 151.970
After a lot of back and forth movement in the market, price was eventually confined to consolidation between 151.970 and the 149.640 strong support zone. The first concerted effort of the market to break out was at the beginning of September when GBPJPY laid a siege below the 151.970 price level. After a while of persistence, the market weakens, drops, and continues consolidating.
After a little while, the market breaks upward with much momentum. Price keeps rising till it meets resistance at 157.890, where the market weakens. Thereafter, the price was knocked down to 156.000. Subsequently, the attempt by the price to rise to continue its impressive bullishness was rebuffed at the same price level, from which price crashed back again to 156.000. The Parabolic SAR (Stop and Reverse) has already switched its dots above the daily candles to indicate reversal as the market price has fallen.
On the 4-hour chart, the market can be seen ranging between 156.890 and 156.000 as bears have now caught up with bulls in a tussle over the market. The RSI (Relative Strength Index), however, has its signal line plunging from the overbought zone and has now dropped below the mid-level mark. All indications point that the market is gradually being taken over by bears and we could see the market fall below the 156.000 support line to 155.150.
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