GBPJPY Analysis – Bears Wield Stronger Influence as Price Seeks to Break 153.280
GBPJPY bears now wield a stronger market influence after forming a double top chart pattern. Until now, buyers were seen to control the price as they utilized the support strength at 153.280. Their failure to immediately break through the resistance level at 158.060 leads to a drop back to the support, and a second breakout failure plays into the bears with a double top pattern.
GBPJPY Key Levels
Resistance Levels: 160.040, 158.060, 156.030,
Support Levels: 153.280, 149.500, 148.490
The 153.280 fundamental level has been critical to GBPJPY movement. From mid-July 2021 to early October 2021, it acted as a limiting level for the market. When it was eventually breached, it alternated as support and resistance to price movement. By late January 2022, it solidified as support, cutting off the movement of GBPJPY below it and supporting the effort of the bulls to break the 158.060 resistance.
The failure of the bulls to mount sufficient pressure on the resistance means the pressure is back on the support level. And with a double top formation, bears are set to break through it downward. The bearish indicators are well spelt out. The MACD (Moving Average Convergence Divergence) has switched to bearish bars to accompany a downward cross. The MA Cross (Moving Average) is also downward.
Market Expectations
The breakpoint for the market is when the price trades below the uptrend line, thereby altering the market’s direction. The 4-hour chart shows that the second test on the 153.280 fundamental level has violated it. GBPJPY is now back to retest the price line from below, which should trigger a free fall to 149.500. The Moving Averages remain above the market as resistance while the MACD lines have plunged well below zero.
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