GBPJPY Slips as Buyers Show Weakness

Market Analysis – Bearish Opportunity Emerges

GBPJPY Slips as Buyers Show Weakness. The market has witnessed a significant shift in momentum as the bulls, who have been dominating the scene, show signs of weakness. 

GBPJPY Market Zones

Resistance Zones: 189.990, 188.100
Support Zones: 185.090, 178.470

For several days, the GBPJPY pair has been on an upward trajectory, with the bulls driving the price higher. However, their momentum has come to a sudden stop as they approached the significant level of 189.990. This level has proven to be a strong resistance zone, causing the buyers to lose their grip on the market. As a result, market sentiment has shifted from bullish to bearish, presenting an opportunity for the bears to take control.

With the bullish momentum fading, there is a possibility of a breach back below the 188.100 market zone. This level has served as a support zone in the past, and if the bears continue to build their strength, it could be tested once again. A break below this level would confirm the bearish sentiment and open up further downside potential for the GBPJPY pair.

The journey of the bulls in the GBPJPY market has been quite remarkable. Starting in January, they experienced a strong impulsive movement, pushing the price from the 178.470 price zone. This marked the beginning of a bullish sentiment that gradually gained momentum. However, in the middle of January, the price experienced a slowdown in momentum, causing it to pull back towards the 185.090 price zone. 

Market Expectation 

Despite the temporary setback, the bullish strength began to intensify again earlier this month. Unfortunately, the recent failed attempt to breach the 189.990 key level indicates a shift in power, with the sellers regaining control. The momentum indicator is currently on a decline, further confirming the suppressed state of the buyers. Additionally, the Stochastic Oscillator suggests that it is time for a price U-turn in favor of the sellers. In times of market uncertainty, traders must rely on accurate forex signals to minimize losses and maximize profits.

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