The Pound Strengthens Further Against the Yen From a Significant Support

GBPJPY Analysis – The Pound Strengthens Further Against the Yen From 159.680

The pound strengthens further against the Japanese yen on the back of the news that the BOJ would maintain an ultra-loose monetary policy. The yen enjoyed a period of respite after the price rose to 164.000 yen, where the market was rejected. Subsequently, the price dipped about 3.40% to reach 159.680. Nevertheless, buy traders began to rally again, and the pound strengthens from that level to rise back to 164.000.

GBPJPY Key Levels

Supply Levels: 167.810, 165.780, 164.000
Demand Levels: 159.680, 151.000, 148.490
The tussle for dominance between the pound and the yen stretches from February last year when prices rose above the 148.490 significant level. Though the market will fluctuate to a price level of 158.060, the price didn’t drop below 148.490, which now acts as a demand level. With the demand level as a firm support, the pound then strengthens against the yuan till it broke the lid of the 158.060 supply line.

Since then, the pound has kept strengthening against the Japanese yen. After rejection, market investors took a breather at 164.000, but the pounds strengthens again to climb back to 164.000. The EFI (Elders Force Index) has its power line remain at a positive value even when the market retraces back to 159.680. The Parabolic SAR (Stop and Reverse) has switched its dots below the daily candle to support the buyers.

Market Expectations

The 4-hour shows the market’s interplay between the key levels. After the price dropped to 159.680, the market strengthened to violate the immediate higher critical level at 161.650. The pound then leverages the level to spring back to 164.000. An initial rejection follows, but the price seeks to retest the resistance level to break it. If successful, the GBPJPY will attempt to reach a 6-year high of 167.810.

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