GBPJPY Forms Shooting Star, May Head for Correction Beneath Mid 134.00 Level

GBPJPY Price Analysis – July 12

During the prior week, GBPJPY posted a high at 135.92 level, forming a shooting star candlestick and may head for correction beneath mid-level 134.00 – a negative signal may be on track for the pair. Asian stock markets reinforced the tone of the offer around the anti-risk Japanese yen as the coronavirus reemergence crushed optimism in the US and around the world.

Key Levels
Resistance Levels: 147.95, 139.74, 136.35
Support Levels: 133.79, 131.75,129.29
GBPJPY Long term Trend: Ranging
From an analytical point of view, the decline of the pair to level 134.28 puts the bears back into the pilot’s seat. The losses confirmed the bearish shooting star candle formed during the prior week, bringing an end to the corrective rebound seen on June 22 from lows near to 131.75 level.

Thinking long term, it requires a higher surge beyond 144.95 level to return the optimism of an up-trend market. As long as resistance level 147.95 holds, there is the potential downside breakout in favor. A strong breach of 147.95 level, nevertheless, may increase the risk of bullish long-term reversal.
GBPJPY short term Trend: Ranging
Last week GBPJPY rose to 135.92 level but fell back. Initial short-term bias this week is first of all neutral. So long as there is a lower level of support of 133.79, more upsurge is slightly ahead.

On the positive side beyond level 135.92 may expand the recovery from level 131.75 to high level 139.74. Consequently, a breach of the level of 133.79 may posit that the recovery is over. Conversely, the intraday bias is pulled back to the downside for support level at 131.75.

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