Market Analysis: GBPJPY Maintains Ongoing Bullish Momentum
The GBPJPY currency pair has sustained a strong bullish trend since early August 2024, signaling a robust uptrend in the long-term outlook. On the daily timeframe, the price has consistently respected the ascending trendline support, confirming the continuation of bullish momentum.
GBPJPY Significant Zones
Resistance Levels: 197.750, 205.600
Support Levels: 188.180, 179.220 
Recent price action saw the GBPJPY pair surge upward after testing the trendline support, further reinforcing the strength of the upward trajectory. This bullish move successfully broke above the previous resistance, creating a new higher high, which serves as a key indicator of sustained bullish momentum.
However, a closer look at the 4-hour timeframe reveals a potential short-term bearish retracement. The intraday price action recently breached a minor trendline support, indicating a temporary shift in momentum. While this bearish tendency is noteworthy, it is largely viewed as a corrective pullback within the broader bullish trend, as the overall market structure remains positive. Caution should be exercised to avoid misinterpreting this short-term weakness, as it is likely a consolidation phase rather than a full trend reversal.
The daily Moving Average (MA) indicator supports this bullish outlook, with prices trading comfortably above the MA line, adding confidence to the long-term upward bias. This technical factor suggests that the current bearish correction is a natural retracement, potentially offering a buying opportunity once a reversal signal emerges.
Market Expectation
The ongoing bearish retracement on the 4-hour timeframe is expected to find support around the 188.180 level, a key area where buyers may re-enter the market. A reversal from this level would likely signal the end of the pullback and lead to a resumption of the primary bullish trend. On the upside, the price is expected to target the 197.750 resistance level, and incorporating reliable forex signals can help traders navigate this potential move.
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