GBPJPY Is Stabilizing on Support at a Mid-Range Level

GBPJPY Analysis – Price Is Stabilizing at the Middle Level of Its Recent Price Range

GBPJPY is stabilizing itself after a routine drive by bears and bulls. The price dropped to 152.580 in another bearish session. But instead of the bulls hijacking the market immediately, the price is stabilizing itself at the moment. Therefore, there have been no significant moves upward or downward for the past 14 trading days. Currently, GBPJPY is trading above 153.500 and showing several indecision candlesticks.

Key Levels of the GBPJPY

Resistance Levels: 155.150, 156.000
Support Levels: 153.500, 152.580
Beginning on May 27th, when the price failed to breach the 156.000 resistance, the market experienced several months of bearish pressure. Buyers tried to make headway at times during the bearish spell, but they were kept under control. As a result of the consolidation, buyers eventually found their way out, resulting in an 8% price increase to the 157.890 key level. Nevertheless, the market started falling again till it dropped to 153.500 and then to 152.580.

At the moment, the GBPJPY is stabilizing at the support level, with no discernible market direction. The spinning top candlesticks can be seen on the market to show a lack of real market direction. The RSI (Relative Strength Index) indicator has risen to an equilibrium level from a bearish position. However, the MA period 20 (Moving Average) suggests that price will struggle to break upwards after this stabilizing phase because it acts as strong resistance to the market.

Market Expectations

On the 4-hours chart, GBPJPY can be seen to be stabilizing itself by tapering through a triangle pattern. As the price accumulates above the 153.500 key level, it gains significant sway in this movement phase. The market might therefore be forced upwards. The MA period 20 is already acting as a support for the market in the short term. The RSI signal line is also gradually moving upward.

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