Has GBPJPY Bullish Tenure Come To an End?

GBPJPY Analysis – Price Has Reached the Pinnacle of Its Bullish Run

GBPJPY bullish tenure may have come to an end after it gives multiple bearish signals in the second week of January in the new year 2022. The price stopped just short of reaching its 5-year high at 158.060 before dropping to receive support at 156.030. This will continue for a few more days as bearish pressure continues to mount. Eventually, the market is anticipated to drop below the support line.

GBPJPY Critical Levels

Resistance Zones: 158.060, 153.280
Support Zones: 149.500, 148.490
Bears and bulls are beginning to expand the scope of their tussle. Previously, the market was seen to crank between the 153.280 price level as resistance and the 149.500 price level as support. However, as market agitations increased, the bulls were the first to break free of the limit imposed on the market. GBPJPY, therefore, was pumped up to a 5-year high. From here, bears overpowered the market and took their turn riding back to the previous support level.

At 149.500, GBPJPY stabilizes itself as the bulls take over the market once again. A strong bullish ride followed, which also broke the first resistance at 153.280. The market falls just shy of re-attaining its 5-year high as sellers begin re-entering the market. Price is now posed for another adventure downward, back to the 149.500 support zone. The EFI (Elders Force Index) has dropped to a negative value to edge the market in favor of the bears.

Market Prospect

On the daily chart, the Moving Averages periods 9 and 21 are about to cross downward to show bearishness. But on the 4-hour chart, the MA Cross is lying above the 4-hour candlesticks to act as a soft resistance in support of the bears. The bulls are resisting a fall though, so they are holding onto the 156.030 price level. But it is just a matter of time before the price drops towards the 149.500 support zone.

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