GBPJPY Is Setup for More Upside Movement

Market Analysis – More Bullish Movement Is Expected From GBPJPY Setup

GBPJPY is setup for more bullish activities after a successful avoiding a drop. A step further to break to the upside of the uptrend line will all but confirm the market reversal. Price has been attempting this with the daily candles popping long wick above the trend line. After springing up from 149.640 key support, GBPJPY has now been forged into a rising wedge pattern which is a bullish formation.

GBPJPY Significant Levels

Resistance Levels: 153.500, 155.150, 156.000
Support Levels: 149.640, 151.200, 152.580
After the initial rally from 149.640, guppy experienced a drawback to fall back to support at 151.200. From here, the market was pushed up again and has now found a solid footing on 152.580. If buyers will restore the bullish pride of GBPJPY, then they must hold above this level and then take a leap upwards to breakout of the rising wedge and the 153.500 resistance. From here, bulls can keep gallivanting upwards.

On the daily chart, the EFL (Elder Force Index) indicator has moved up a little from the zero level which indicates slight increase in the volume of price movement. The EMA 9 and 20 (Exponential Moving Average), however, have crossed each other to the upside, thereby signaling more bullish movement. This will embolden buyers to take more long position of the GBPJPY.

Market Anticipation

The market has bounced up from 152.580 and now lays a siege below the upper border of the rising wedge in a bid to push up out of it even as the market moves closer to the tip of the wedge. The EMA period 9 is lying directly below the 4-hour candles acting as support and urging it upwards, while the EMA period 20 lies further below. Both are indicating strong bullish impulse.

With this setup, GBPJPY will most likely push up out of the rising wedge and the 153.500 resistance. From there a pullback may occur to push price to the next key level at 155.150.

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