GBPJPY Analysis: The Market Falls to a Demand Level of 158.760
The GBPJPY price falls to the 158.760 demand level. The market price action for the second half of the year has been rough on GJ. Most of the periods have been in consolidation, as signified by the continuous crossing of the Moving Averages. The consolidation has also been observed to be followed by a sudden displacement. It has also been noted that a sudden displacement occurs after the consolidation.
GBPJPY Significant Zones
Supply Zones: 165.30, 168.80, 171.30
Demand Zones: 158.760, 156.10, 152.50
GBPJPY moved sideways between the 165.30 resistance level and the 158.70 support level. The Moving Averages cross rested heavily on the bodies of the daily candles because there was no one-sidedness in the market. Suddenly in October, the market dived from the resistance level to the support level very rapidly. The Stochastic indicator moved very rapidly from the overbought region to the oversold region.
At 152.50, very prominent rejection candles characterized by long wicks below the bodies of the candles appeared. The market took off rapidly to attack the 165.30 supply level. The defense of the supply level was broken. The price soared to $171.30, at which point the buyers were exhausted. The supply level’s protection was breached. When the price reached $171.30, the buyers had had enough.
A triple top appeared between 168.80 and 165.30. The bearish reversal pattern was followed by an aggressive decline in price. The market fell to $168.760. The Stochastic is in the oversold region on the 4-hour chart as well as the daily chart. A retracement towards 165.30 is currently anticipated.
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