Market Analysis – GBPJPY Is Currently in a Correction Phase After a Bullish Breakout
GBPJPY impulsive bullish move is expected to follow the current correction phase. The market has continuously posted higher lows and higher highs. The bulls have aggressively been pushing GBPJPY higher. This is seen in the consistent impulsive moves represented by large bullish candles on the daily chart.
The impulsive moves have been consistently faced with retracements which seem to mitigate volatile moves in the market. The alternate impulse and correction have formed an ascending parallel channel.
The midline of the parallel channel acts as a support for the price. The corrections in the market have formed multiple descending channels. Multiple descending triangle chart pattern has also been formed in the market. The impulsive moves have created multiple breakouts of the chart patterns to send GBPJPY higher.
The RSI (Relative Strength Indicator) shows the market bullishness on the daily chart. The Stochastic oscillator lies on the 60.51 mark which depicts bullish momentum in price.
Major Key Zones of GBPJPY
Demand Zones: 148.950, 153.550
Supply Zones: 152.350, 156.150
What to Expect After GBPJPY Correction Phase
The nine Simple Moving Average (SMA) gyrates gently above and below the candles in the parallel channel. This is to show the rise in the price and the corrections. Currently, the indicator has switched sides to rest below the current daily candle to support price.
On the four-hour chart, a descending channel shows the correction in the market. The market has posted a candle above the channel which is a sign of a breakout. A successful breakout of the channel would lead the price to reach the 156.150 key zone. A false breakout would likely lead the price to dive to the lower border of the descending channel or beyond to the lower support zones at 153.550.
The RSI indicator is above the 50 mark showing that the market is still bullish.
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