GBPJPY Heads Upward As Price Fails To Break 157.220 Support

GBPJPY Analysis – Market Heads Upward As Price Fails To Break 157.220 Support

GBPJPY heads upward as the price fails to break 157.220 support. The 157.220 has been quite resistant to price movement for a long time. An influx of sell orders is needed to break the support for the bearish move to continue.

GBPJPY Significant Zones

Demand Zones: 157.220, 148.630
Supply Zones: 162.330, 172.130

The market was in an upward trend up until the appearance of the most recent falling trendline in November 2022, which is now acting as a diagonal resistance against the upward flow of price. The GBPJPY sellers’ persistent attempt to change the market’s order flow, on the other hand, could be interpreted as price stability, with aggressive expansion to the downside at every correction wave. After successfully invalidating the diagonal resistance of price across June 2022 to September 2022 highs, the price headed downward to run through the sell-side liquidity below the relatively equal lows around the 160.000 price level.

The correction phase continued even after invalidating the relatively equal lows, and the price dived further downward to invalidate the intermediate-term low at the 155.590 price level. At a single hit on the 148.630 demand zone, the price aggressively expanded upward as GBPJPY sellers took profits. As of now, the market is currently trading within the 172.130 and 148.630 price levels. The 157.220 support seems difficult to break as more GBPJPY sellers keep exiting the market. As the price finally leaves the discount zone, the MACD indicator shows that the GBPJPY is heading upward. A retest and breakout are imminent at the diagonal resistance if the 162.330 price level gets breached.

Market Expectation

The market’s order flow on the four-hour chart is bullish. After the buy orders were executed at the four-hour bullish order block, the GBPJPY bullish order flow is expected to continue until the diagonal resistance was retested.

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