GBPJPY Buyers Recover Above a Strong Confluence Point After the Rejection

GBPJPY Analysis – October 7

GBPJPY buyers recover above a strong confluence point in which a trendline crosses a weekly support level at 161.260. The buyers are bossing the market, but they are having a tough time breaking down a strong resistance level at 167.810. Time and again they have tested the resistance level, and each time the rejection dampens the strength of the buyers, but they recover each time.

GBPJPY Key Levels

Resistance Levels: 167.810, 165.780, 163.000
Support Levels: 161.260, 159.680, 149.500

GBPJPY Long Term Trend: Bullish

The second major time the 167.810 resistance level was tested was on the 8th of June. The price just recovered after another major rejection. So a second rejection led to increasing weakness on the part of the buyers, as seen by consistent lower highs. Buyers converted the unfavorable trend to their advantage by summoning the strength to rise past the trendline to 167.810. Yet again, the market suffered rejection.

The rejection weighed heavily on the price, so much so that it dropped beyond the weekly support level at 159.680. The drop went all the way down to 149.500. Once again, the bulls revived and surged right back above the trendline. GBPJPY has retraced back to the trendline currently. However, the dots of the Parabolic SAR (Stop and Reverse) below the daily candles shows that the buyers retain the greater influence.

GBPJPY Short Term Trend: Bullish

The market is slated to continue its bullish run as the current retracement comes to an end above the confluence zone at 161.260. The current retracement has brought the RSI (Relative Strength Index) line slightly below the middle level on the daily chart and the 4-hour chart. That is set to change as the price is expected to strengthen again to attack the resistance level.

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