GBPJPY Analysis: The Bears Are Approaching the Critical Support Zone at 149.640
GBPJPY bears are set to once again test the resolve of the long-standing price support zone at 149.640. The support level contributed to the last upsurge in the market. It stopped the price drop and caused a strong reversal that helped the market break through the 151.970 major resistance level. This eventually led to a 6% increase in price till the market was rejected at 157.890.
GPBJPY Key Zones
Resistance Zones: 157.890, 151.970
Support Zones: 149.640, 150.500
The bears immediately began exploiting the weakness in the market as the price stalled at 157.890. Bullish strength is gradually reduced as the market slides down a descending channel. This was followed by a major drop on the 4th of November. Further resistance from the bulls at 152.580 was broken as sellers employed a triangle mechanism to plunge the market further. GBPJPY has now dropped back to the monthly support at 149.640.
At this level, bears are set to test the resolve of this support level again. Already, a strong rejection can be seen as the candle was only able to reach the level with a long wick. Today’s candle is currently bullish, trading at around 150.992, having been repelled at the support. The Stochastic Oscillator is in support of a bullish reversal as its lines have crossed upward from the oversold region.
Market Anticipation
On the 4-hour chart, the price is in the ascendency. A tweezer bottom candlestick formation has been used to push the market back above 150.500. There is an initial resistance right now at 151.500. Buyers, however, can be counted on to eventually lift the market to 151.970. The EMA (Exponential Moving Average) is likely to pose as resistance to the market at 151.970.
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