Bears Bring GBPJPY Crashing Down to Earth

GBPJPY Analysis – Bears Bring GBPJPY Crashing Below 153.280

Bears bring GBPJPY crashing down to earth after the price plunges beyond the 153.280 significant level. After bouncing off the same significant level, buyers had earlier set the market on an uptrend. From there, the price moved up a trend line till it rose to meet resistance at 158.060. A drop for support at 156.030 was not enough to keep the price afloat, and this brings GBPJPY crashing through the level and trendline.

GBPJPY Key Levels

Resistance Levels: 158.060, 156.030, 153.280
Support Levels: 151.000, 149.500, 148.490
The 153.280 price level, being a significant level, has been used by both buyers and sellers to influence the market. Market investors are the latest to harness the strength of the critical level. They first broke through it on December 24th, 2021. After price failed to break through the 158.060 resistance level and fell, they used it as a support and a springboard for a resurgence.

However, a second rejection at the 158.060 supply zone has provided sellers with an opportunity to manipulate the market. After plunging below the uptrend line, the next strategy was to break the 153.280 key level. They did this after much downward pressure on the level. Bears then bring GBPJPY crashing toward the next support at 149.500. AS PRICES DROP, the ATR (Average True Range) indicator shows an upsurge in volatility.

Market Expectations

On the 4-hour chart, prices have dropped below 153.280, but the market is enjoying some respite at 151.000. This brings GBPJPY into retracement toward 153.280. It will take a volatility surge for bulls to highjack the market from this point, but the ATR indicates declining volatility instead. The Stochastic Oscillator is near the overbought region, which suggests the price will resume bearishness on or before retesting 153.280. This will eventually bring the price down towards 149.500.

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