GBPJPY crashes steadily after reversal at the supply zone. The market has continuously switched power between the bulls and the bears. There has been very little consolidation since October 2021. The bulls went long from the demand zone at 148.970. They were very dominant in the market. There were multiple consecutive days of unresisted bullish run from October at 148.970 to the Supply Zone at 157.730.
After a reversal at the supply zone, the market crashed back to 148.970. The month of November was plagued by consolidation. The demand zone at 152.440 gave way to the bears as the month ended. Price tapped once again into the 148.970 demand zone. There was a little consolidation before the price skyrocketed to 157.730. A double top reversal pattern formed at the supply zone. The Williams Present range indicated the market was overbought. The Parabolic SAR (Stop and Reversal) eventually gave the final confirmation of a bearish run.
GBPJPY Short Term Trend: Bearish
A steady bearish trend is obvious on the four-hour chart. Consistent lower highs and lows have led the market into the 154.400 zone. The Williams Percent Range is currently oversold in both the daily timeframe and the four-hour time frame. The previous supply zone might be used by the bulls to support bullish action.
However, the bears seem to be very heavy as they keep creating impulsive moves after the reversal in the supply zone. The bears are likely to push through the 154.400 zone down to the next demand zone at 152.440. A breakout-and-retest is expected below the 154.400 zone. The market is still crashing steadily after the reversal at the 157.730 supply zone.
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