GBPJPY Buyers Currently Losing Momentum

Market Analysis: Buy Traders Currently Lack Supply

GBPJPY buyers are losing momentum. A noticeable shift has taken place in the GBPJPY currency pair. The sellers have successfully broken through the defenses put up by the buyers. This breach has resulted in a significant drop, clearly visible on the daily chart.

GBPJPY Key Levels:
Resistance Levels: 186.940, 184.360
Support Levels: 182.940, 178.010

Up until the end of October, the buyers had been showing remarkable strength, particularly around the 180.920 significant level. Their bullish order flow gained momentum as prices surged past the 182.940 market zone. However, their impressive run was halted at the 184.360 significant level. This now serves as the focal point for the bearish sentiment in the market.

The Parabolic SAR (Stop and Reverse) indicator shows that a reversal is underway, signaling that sellers are gaining control. This reversal may be attributed to a depletion of buyer enthusiasm following their robust liquidity ride. However, the MACD (Moving Average Convergence and Divergence) indicates an ongoing upward climb, positioned above the 0.00 line. This suggests that buying momentum will likely rekindle in the market, potentially following this pullback.

Market Expectation

On the 4-hour chart, it becomes apparent that the bears are exerting downward pressure. This pressure is particularly towards the 182.940 significant zone. This level holds significance, and traders should keep a close watch for a potential rebound. It could serve as a turning point in the market. As the situation unfolds, traders should remain vigilant and look for confirmation of the upcoming market trends. The GBPJPY currency pair’s performance will likely depend on the interplay between buyers and sellers.

Note: Forexschoolonline.com is not a financial advisor. Research before investing your funds in any financial asset, presented product, or event. We are not responsible for your investment results.