GBP/JPY Is In A Downward Correction, Upward Move Likely

GBP/JPY Is In A Downward Correction, Upward Move Likely

Key Resistance Levels: 150.000, 152.000, 154.000
Key Support Levels: 146.000, 144.000, 142.000

GBP/JPY Price Long-term Trend: Ranging
GBP/JPY is presently in a sideways trend. Since March 11, the currency pair has been struggling to break above level 152.500. The pair has retested the resistance level on more than three occasions. On April 6 the resistance was broken but the bullish momentum could not be sustained. Meanwhile, on April 6, a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that the Pound will rise to level 2.618 Fibonacci extension or the high of 160.86.

GBP/JPY – Daily Chart

Daily Chart Indicators Reading:
GBP/JPY has risen to level 56 of the Relative Strength Index period 14. This indicates that the pair is in the uptrend zone and above the centerline 50. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.

GBP/JPY Medium-term Trend: Ranging
On the 4-hour chart, the pair is in a sideways move. The pair retested the resistance at $152.00 twice but was repelled. Today, the market is falling after retesting level 152.500. In the previous price action, the currency pair will fall to level 149.50 after retesting the resistance zone.

GBP/JPY -4 Hour Chart

4-hour Chart Indicators Reading
The GBP/JPY pair is below the 60% range of the daily stochastic. The market is in a bearish momentum. The 21-day and 50-day SMAs are sloping horizontally indicating the sideways move.

General Outlook for GBP/JPY
The GBP/JPY pair is currently in an upward move. The pair will resume upward if the resistance at level 152.500 is breached. According to the Fibonacci tool, the market will rise to 2.618 Fibonacci extension or the high 160.86.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.