GBPJPY Analysis – Buyers Are Under Attack as Price Holds Back
GBPJPY buyers are under pressure as prices retreat to the 167.870 key zone. The buyers are currently under a bearish attack following a bullish rise above 167.870, the key level. Many traders had thought that the buy liquidity expansion would take a while before a relapse, but we’re disappointed as the bulls are currently under pressure. If more selling activity continues, the sellers may eventually pull the price back into the ranging channel. However, buying progression is still much more dominant at the moment despite the sellers’ attack on the daily chart.
GBPJPY Key Zones
Resistance Zones: 167.870, 159.840
Support Zones: 155.730, 151.340
A steady stream of consolidation was observed in the GBPJPY market a few months ago. Both traders have been constantly wagging war inside the consolidation range of 159.840 and 167.870 key zones. The buyers were the ones who pushed the price momentum into this consolidation phase after a strong bullish moment from the 151.340 key zone in March 2022. As prices continued to range, both prospects tried to look for a way out to break through the consolidation phase. Market liquidity first appeared during a bearish period, when the price traded down with a strong wick candlestick to the 151.340 key zone. The buyers then decide to act from the critical zone of 155.730.
Buying strength has been very active as buyers were able to penetrate through 167.870 key zones. The MFI (Money Flow Index) is suddenly on the decline as buyers are under pressure to push further. The MACD (Moving Average Convergence & Divergence) indicator shows buyers’ strength is still open to react to the market on a daily time frame.
Market Expectations
The sell traders are driving the price tendency to retreat to the 167.870 key zone. We anticipate prices to pull back before pushing upward again in the market. Following the price retracement, we should see buying continuation on the 4-hour chart.
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