Market Analysis: GBPJPY Experiences Intense Bearish Trend
The GBPJPY currency pair experienced a significant bullish trend, peaking at the 207.620 mark. This upswing began in early May 2024 and was characterized by a strong increase in buying momentum, with the price remaining in the overbought territory according to the daily Relative Strength Index (RSI). However, the bullish run came to a halt at the 207.620 level, leading to a sharp reversal in price movement.
GBPJPY Significant Zones
Resistance Levels: 204.320, 207.620
Support Levels: 201.580, 197.470
Recent market behavior has shown an aggressive decline, breaking past the key support level at 201.580. The current downward trajectory of the GBPJPY pair does not show signs of abating, with the price aiming towards the 197.470 demand level. The daily RSI supports this bearish outlook, as it trends towards the oversold region, mirroring the increased bearish momentum in the market.
Additionally, the daily Moving Average (MA) indicators have begun to signal a bearish trend, with the price currently trading below these key indicators. The 4-hour chart further corroborates the bearish sentiment, as evidenced by a recent break of structure to the downside.
Market Expectation
The GBPJPY pair is expected to continue its aggressive descent, potentially breaching the 197.470 support level. A shift towards a bullish retracement might only be anticipated if the daily RSI indicates an oversold condition, suggesting a temporary easing of selling pressure. Traders may benefit from utilizing accurate forex signals to navigate these market conditions and make informed trading decisions.
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