Market Analysis – GBPJPY Rebounds off 149.640 Key Support With Strong Volatility
The 149.640 key support has once more proved its mettle by defending the market against a strong barrage from the sellers. GBPJPY had rallied to hit a 3-year high of 156.000 on the 27th of May 2021. Since then, sellers have been determined to plummet the market. The guppy has thus far been sliding down and spiking downward with increasing volatility at different intervals.
Resistance Levels: 152.580, 153.500, 156.000
Support Levels: 151.970, 149.640, 148.400
The 149.640 key support, however, has been a major ally for the buyers. It previously helped to keep the market from plummeting on the 23rd of April 2021. And in a situation where it was side-stepped, it was aided ably by the 148.400 support. This happened earlier on the 24th of March 2021. Another attribute of the key support is that when price falls, it pushes the price higher. This is what helped the market to reach 156.000.
The sellers eventually crashed the guppy back to the 149.640 key zone with so much volatility that the market spiked past the zone. 148.400 was, however, on hand to provide a backup. A morning star candle pattern was employed by buyers to repel bears in an instant. As in previous times, the market has leaped up and failed to make a lower high. It remains to be seen if this will cause a reversal in price direction.
The Guppy is now on an uptrend and bouncing along an ascending line. The Parabolic SAR (Stop and Reverse) has two dots under the 4-hour chart to confirm the current bullish moment in the market.
When the 149.640 key zone repelled the fall of the guppy, it did so with a lot of volatility, but now, as the market moves up, the ATR (Average True Range) indicator shows us that the volatility is reducing. The sellers could exploit this loophole to depress the market again.
Right now, bulls are focused on reaching and surpassing the 153.500 key level.
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