GBPJPY Retraces in Short-Term as RSI Reaches 70.0

GBPJPY Makes a Short-Term Retracement As RSI Hits 70.0 Level

GBPJPY makes a short-term retracement as the RSI (Relative Strength Index) hits the 70.0 level. The market has been in a bullish trend since the beginning of 2023. Despite the ongoing uptrend, the GBPJPY experiences only a slight decline into the discount zone. This implies that the incoming retracement might not only last for a short while.

GBPJPY Significant Zones
Demand Zones: 168.430, 148.630
Supply Zones: 188.810, 195.630

Until the year 2023 began, the trading range of GBPJPY was between the 172.130 old high and the 148.630 old low. An expansion to the upside occurred after a rejection at the 148.630 price level. This caused a fractal movement that continued until the formation of the 172.120 swing high. The previous resistance at the 168.430 price level further orchestrated the decline that followed the 172.129 swing high. The decline eventually ceased at the 62.0% retracement level of the trading range.

Owing to the buying pressure from the discount zone, GBPJPY surged upward as the year began. More GBPJPY buyers kept storming the market, thereby increasing the market’s volatility and buying momentum. The continuous expansion led to a market structure break, propelling GBPJPY to the upside. The uptrend continued, with insignificant retracements, as the GBPJPY sellers failed to take control of the market. Another market structure break occurred at $184.100, which made the market oversold according to the RSI.

Market Expectation

According to the MA Cross, GBPJPY is bullish on the four-hour chart. This followed the price reaction towards the bullish order block on August 6, 2023. Following a sell-side liquidity grab below the 184.550 price level, GBPJPY is expected to resume its bullish trend.