GBPJPY breaks out to the upside of its structure. The buyers have once again shown tremendous resilience to overturn the wiles of the sellers. They have used the incredible strain put on the market to their advantage, helping them to push above the triangle structure instead of falling below the 159.680 demand zone. GBPJPY is now free to keep riding upwards.
GBPJPY Key Levels
Resistance Levels: 167.810, 165.780 Support Levels: 159.680, 164.000 The Japanese yen is proving very resilient to keep a respectable price level against the pounds. The currency recently survived a fall around May and recovered above the 159.680 strong demand zone. No sooner had the price risen than the sellers began to bully the market back downwards. A triangle structure was used to drill the currency pair towards the demand zone to plunge it back below.
The buyers have instead used the downward strain to their advantage. A bullish impulse has helped the buyers to spike upwards. GBPJPY, therefore, breaks out to the upside of the descending triangle pattern. All signals point to a very bullish market right now. The MA Cross (Moving Average) has made a sharp upward cross. The lines of the MACD (Moving Average Convergence Divergence) have instantly crossed beyond the zero level.
Market Expectation
The 4-hour chart indicates what to expect after the price breaks out. The market is likely pulling back for retracement at a strong confluence of the upper border of the triangle and the 164.000 key level. Afterwards, the currency is expected to drive upwards to violate the 167.810 resistance level. The MACD lines have risen very high above the zero level.
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