GBPJPY Keeps Following a Meandering Pattern Between Key Levels

GBPJPY Analysis – Price Keeps Meandering Between Significant Levels

GBPJPY keeps following a meandering pattern between key levels. The price can be seen halting its rise just below the 158.060 significant level. Thereafter, a struggle begins, which led to a drop in the market. The price, therefore, drops below 156.030 and keeps falling. Currently, the sellers are trying to negotiate the 153.280 significant level (which is acting as a middle line between the consolidation). There is resistance, but sellers are likely to scale through.

GBPJPY Significant Levels

Resistance Levels: 158.060, 153.280
Support Levels:149.500, 148.490
Since mid-2021, GBPJPY has assumed a meandering pattern. This was first between 153.280 as resistance and 149.500 as support. But by October, the market had generated much excitement and the price range couldn’t contain it. This led to a breach of the consolidation resistance and the price surged past several key levels till it was stopped abruptly at 158.060. Sellers took the opportunity to also ride the market back to the original support level.

It can be noticed that the former resistance at 153.280 remains potent but as a support line. The level can be seen causing a period of stagnation in the first enlarged meandering cycle before the market eventually drops. The price is at the same level again with mounting resistance. As in the previous time, the Stochastic Oscillator has crossed upward from the oversold region. It remains to be seen if buyers will use the opportunity to seal the market at this level.

Market Expectations

On the daily chart, the previous cycle was completed only after the price fails to breach the MA (Moving Average) period 20. This is similar on the 4-hour chart as the price did not truly shake off the MA period 20 from above it. Currently, the price keeps trying to shake off the MA 20 again. The Stochastic Oscillator of the 4-hr chart is approaching overbought. If the market breaks above the MA, then buyers can be back on the ascendant back to 158.060.

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