GBPJPY Breaks Upward to Revive Bullishness

GBPJPY Analysis – Price Breaks Above 159.680 to Revive Bullishness

GBPJPY breaks upward above the 159.680 strong key level to revive bullishness. The sellers intercepted the market, plummeting it below the 159.680 significant level. However, the bulls would not let the market continue a downward slide and fought back against the bearish tide. The sellers, who were still active, did their best to prevent the flow of the price back above 159.680, but the buyers’ resilience paved the way.

GBPJPY Significant Levels

Resistance Levels: 163.000, 164.000, 167.810
Support Levels: 151.000, 156.030, 159.680
The first level at which the bears delivered a blow to the market was 167.810, with buyers still in their prime. This led to weakness in the market and, subsequently, an immediate drop with consecutive bearish candles back to the 159.680 support level. The buyers’ attempts were further curtailed until the market was pressured below the key level. At this point, buyers were allowed to regroup and launch an attack back upwards.

Therefore, there was a struggle for power from the 11th to the 27th of May as opposing forces clashed around the same influential 159.680 price level. The buy traders did just enough to see the market through, and the price breaks upward beyond the key level. The Stochastic Oscillator lines have surged upwards into an overbought status. We could see a retracement which will allow the bulls to strengthen further.

Market Expectations

The 4-hour chart shows that after the price breaks out beyond the 159.680 significant level, it immediately meets resistance at 161.650, easily bypassed with a pullback and break technique. At 163.000, the market has met another strong resistance. The price will likely implement another pullback and break technique to reach 165.780. The Parabolic SAR (Stop and Reverse) has switched its dots above the 4-hour candles to signal bearish activity.

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