GBPJPY is currently moving to and fro within the same key levels. The market is stuck between the 160.80 resistance level and the 156.50 support level.
The GBPJPY market is showing a second consolidation phase since the bearish reversal at 171.80. The market took off from 150.80 on the 26th of September after posting a very prominent rejection. Already, the Williams% R (Williams Percent Range) was oversold. The market was oversold, as signified by the Williams % R (Williams Percent Range) at the point of the bullish takeoff. The market structure was bullish with the formation of higher highs and lows. The Parabolic SAR (Stop and Reverse) indicator led the market to the supply level at 171.80
A bearish shift in the market structure formed after the test of the 171.80 key level. The first consolidation phase formed after the reversal. The market lingered between the 168.00 and 164.50 significant zones. Equal highs and lows formed continuously within the range. The Parabolic SAR formed on both sides of the range to reveal the contention between buyers and sellers. Eventually, a large bearish candle broke out of the range in December. The Parabolic SAR led the market to lower levels to initiate the formation of the second consolidation.
GBPJPY Short-term Trend: Ranging
The Parabolic SAR is forming on both sides of the candles on the 4-hour chart. The points of the Parabolic SAR continue to switch positions. The Stochastic is oversold on the lower time frame as the market is swerving into the oversold region on the higher time frame. The market is expected to rise to the higher side of the range at 160.80.
