GBPJPY Key Levels
Demand Levels: 154.800, 156.000, 157.000
Supply Levels: 153.450, 152.000, 150.860
GBPJPY Market Analysis
GBPJPY has been experiencing a spectacular pump in price since its break out at the turn of the year. Price broke out in a very strong bullish impulse on 12th January 2021. This continued unabated till it got near the 150.860 key level on the 24th February 2021, where sellers fought back. The bearish hold was short-lived, lasting only two days before buyers took the market to the next key level at 152.000. Subsequently, buyers and sellers have been jostling for dominance in the market with the buyers generally having the upper hand. These alternate activities of the bulls and bears eventually resulted in an ascending parallel channel with the price making consistent higher-highs and higher-lows.
What to Expect From GBPJPY
On 20th April 2021, sellers took advantage of the parallel channel mid-line which coincided with 152.000 key level to rebound downwards. There was a second retest on the mid-line before the bulls eventually forced the price above the 152.000 key level and the mid-line. Now with resistance at 154.800, the price is finding strong support also on the parallel channel mid-line to make a new higher-high at the upper border of the parallel channel. The market has opened with a small bullish candle.
The Parabolic SAR (Stop and Reverse) has a long line-up of dots under the candlesticks. This shows the resilience of the buyers in taking the market further upwards. The MACD (Moving Average Convergence Divergence) vividly shows the state of the market. There are more bullish histogram bars. Two sessions of the red histogram bars depict the short market retracements. The current small single red bar is a result of the resistance faced at 154.000. The signal lines have remained above the zero level showing the general bullish nature of the market.
On the 4-hour time frame, the price has conformed to a symmetrical triangle formation with the mid-line adding extra support at the lower border. The Parabolic SAR currently shows selling activities. The MACD confirms this with red histogram bars and its signal lines below the zero level, but the bars’ sizes are reducing and the signal lines have are crossing each other in an upward direction.
Price is expected to eventually break out of the triangle to the 156.000 resistance which coincides with the upper border of the parallel channel.
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.
Leave a Reply