GBPJPY Buying Strength Is Suspended as Prices React Close to the Trend Line

GBPJPY Analysis: The Buying Strength Is Suspended as the Prices React Close to the Trend Line

GBPJPY buying strength is suspended as price react close to trend line. The sellers are now piloting sell movement following a buying retracement to the trend line. Following the string of lower high created by the buy traders, we have clearly seen price falling in into a descending channel. The 159.150 key zone has not been tested for a long time, despite the sellers’ placing it hard to displace price momentarily downward. The beginning of August showed us how sellers were rejected due to inadequate pressure from their end.

GBPJPY Market Zones

Resistance Zones: 168.430, 164.170
Support Zones: 159.150, 155.930

Nevertheless, the sellers are still building up momentum slowly as the price oscillator is still below the middle range. Since the selling pace has been building up, we are almost close to seeing the price fall out of the 159.150 key zone. Taking a stroll backward, we see a lot of buying strength. However, despite the buying moment, the 168.430 key zone has proven to be a rigid resistance level to be tested by the buyers in the GBPJPY market. The buyers hit this key level twice and were unable to penetrate through it.

However, the second time the buy traders hit this price level, it gave rise to market interaction between the buy and sell traders. As a result, the price retested the key zone of the trend line moment. The sellers are still in shape to eventually break through the 159.150 key zone as the RSI (Relative Strength Indicator) still indicates a strong selling impact on the GBPJPY price. The daily chart of the currency pair will therefore unfold it self as price continue to drop in the descending channel.

Market Expectation

The buying pressure is already suspended on the trend line. The sellers are now opening more channels for the price to flow downward. The RSI still shows the price index holding ground as a bearish display is setting in on the 4hr chart. Traders should brace for a selling impact down to the 159.150 key zone.

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