Price Analysis – 149.640 Momentarily Keeps GBPJPY From Sinking Deeper
The 149.640 support zone has halted GBPJPY from sinking deeper. The fall of price began on the 28th of May 2021 when the market reached the 156.000 key level. The last time GBPJPY reached this height was in February 2018. Sellers immediately started to sink the market after reaching this height. GBPJPY, hence, has been in a sliding downtrend.
GBPJPY Key Levels
Resistance Levels: 153.500, 151.970
Support Levels: 149.235, 148.400
The selling pressure on the market is so great that there were downward spikes to hasten the fall of the market. However, price recovered each time. The spikes occurred on the 18th of June and on the 8th of July respectively. On Monday 19th July 2021, another spike occurred with greater volatility that plunged the market past the 149.640 major support zone. The 148.400 support, however, was an able backup to rebound price upwards.
GBPJPY is now back on the 149.640 major support zone and trying to push up. The down trend line, which accounts for the spikes, is now acting as a resistance to ensure the markets sink deeper. The MA period 9 (Moving Average) is in support of the market fall as it is positioned above the daily candles to press it down. The ATR (Average True Range) indicator shows that market volatility has been increasing with the market fall.
The 149.640 key support has resolutely defended the market, but there is an increase in pressure with every new 4-hour candle created. Currently, the market has crashed into the descending trend line.
The MA period 9 has moved below the 4-hour candles and is pushing the price up. The market volatility is still increasing with the fall in price.
Bears are sustaining the pressure and it is predicted that the 149.640 support will eventually give way to allow price to sink deeper.
Note: Forexschoolonline.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.