GBPJPY Is Already Set on a Bearish Course

GBPJPY Analysis – Sellers Are Descending the Price Lower to the 163.920 Key Zone

GBPJPY is already set on a bearish course as sellers plan to descend back to the 163.920 key zone. The sellers may come out in force in the coming days as the candlestick continues to fall. The beginning of this week shows buyers failing to get past the 169.290 key zone. However, the price took a turn to trade lower as a result of being in a defending trend channel. At the moment, the bearish power is more defined, as we expect a bearish swing. The currency pair is therefore set to smash through the 169.290 key zone and down to the lower trend line. However, with price activity close to the lower trend line, there could be a bounce back into buying action.

GBPJPY Key Levels

Resistance Levels: 169.290, 163.920
Support Levels: 159.870, 154.650

Following the sellers’ dump, the bulls rallied to 154.650 in the key zone. Since the beginning of June, the price has been swinging lower within the descending trend channel. The bears are therefore highlighted by breaking away from the trend zone. At the 154.650 key zone, the buyers picked up momentum, and the GBPJPY price eventually shot solidly first to the 163.920 significant level. After making contact at this pivot level, the market drew back down to the 159.870 key zone. However, a further extension was observed as the price rose to the 169.290 key zone.

Price extension above the 169.290 key zone was overwhelming for the bulls. Sellers began to sell short in the market. Since the beginning of November, the GBPJPY price has been trading in a descending channel. Prices continue to swing lower as lower highs are being formed. The stochastic RSI (relative strength index) is descending lower as a confirmation of bearish strength. The MACD (moving average convergence and divergence) indicator is also trading lower as the price trails back to the 169.290 key level.

Market Expectation

On the 4-hour chart time frame, the GBPJPY market continues to trade lower in the market. The bears are therefore quite ready to descend lower to the lower trend channel in the coming days.

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