GBPJPY Bounces Upward After Re-Engaging a Significant Price Level

GBPJPY Analysis – Price Bounces off the 153.280 Key Level Upon Re-Engagement

GBPJPY bounces upwards after it re-engages the 153.280 significant level. As in previous times, the market rose to a resistance level of 158.060 from where it began a swift descent. The price dipped towards the strong mid-range price level at 153.280, but the market could only touchdown at the level with long wicks. The price bounces up immediately and continues rising towards 156.030.

GBPJPY Important Levels

Resistance Levels: 158.060, 156.030
Support Levels: 149.500, 153.280
GBPJPY has recently expanded the range of its consolidation. The market breaks through the 153.280 supply line on the 11th of October as the price bounces off the base support at 149.500. GBPJPY rose 6% till it was halted at the 158.060 resistance level. This became the new resistance to the expanded market consolidation. Subsequently, the price drops off to continue another ranging cycle.

The beginning of a new ranging cycle wasn’t as straightforward because the fall of the market was disrupted at the former 153.280 resistance, which remains a strong price level. GBPJPY eventually pushes through to create a new range cycle. The formation of a second cycle, however, is being hampered as the price bounces clear of the 153.280 level. The EFI (Elders Force Index) suggests bulls are taking over the market as it keeps rising to a positive value and to 156.030.

Market Expectations

On the daily chart, the Moving Average period 50 reinforced the 153.280 price level to bounce the price up. The MA period 50 is also now contributing to the uprising in the market after being previously breached. The EFI power line is sitting comfortably above the middle line to show that the bulls now have the upper hand. 153.280 could be the new market’s low as prices push towards 156.030.

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