GBPJPY Buyers Exit The Market As Price Leaves Premium

GBPJPY: Buyers Exit The Market As Price Leaves Premium

GBPJPY buyers exit the market as prices leave the premium zone. With the last day of February 2023 closing below the open of the day, the price sets to flip bearish as it heads downward. Once the previous low formed around 161.0 is broken, the price might continue heading downward.

GBPJPY Significant Zones
Demand Zones: 157.220, 148.630
Supply Zones: 163.030, 172.130

About three months ago, following the massive expansion of price from the 148.630 price level, a shooting star was created at the end of the rally. GBPJPY headed downward following the creation of the shooting star. This was a result of the selling pressure at the 173.130 resistance, which was also at the premium. The shooting star, which marked the long-term high, has been a holy grail for buyers ever since its creation. Before the massive expansion of price from 148.630, the market was typically not in a specific order flow on the daily timeframe.

GBPJPY was lengthily gyrating about 163.030 as a tug of war accrued between the bears and the bulls. As of now, a bearish move seems inevitable as the price heads downward after expanding deep into the premium. The high of the shooting star candlestick that formed on February 28, 2023, could likely be the high of the expected bearish phase. Owing to the reluctance of prices to massively expand to the upside, a massive crash might ensue anytime soon.

Market Expectation

While GBPJPY is currently rising alongside an ascending channel on the four-hour chart, a breakout to the downside is looming. A breakout to the downside is expected to happen as the price leaves the premium zone.