GBPJPY Is Set to Confront the Weekly Resistance Level Again

GBPJPY Analysis – October 14

GBPJPY is set to confront the weekly resistance level at 167.810 again after bouncing off a strong confluence point of the trendline and the significant support level at 159.680. The currency pair has tried to breach this resistance level several times unsuccessfully this year already right from April in the second quarter of the year. However, the buyers are persistent and would be giving it another shot.

GBPJPY Significant Zones

Resistance Levels: 170.570, 167.810
Support Levels: 165.780, 158.680
The resilience of the market buyers is very commendable. Most times they put in a lot of effort to bypass the 167.810 resistance level. And when they fail, due to the much strength used up, the price tends to fall very hard. Twice, this has led to the dip of the price beyond the critical demand level at 159.680.

However, on short notice, the bulls usually rally together to restore the price before the bears take advantage of it to overpower them. The latest one happened on the 13th of September and similarly, the market failed again, leading to a stronger dip to 149.500. Yet again, the market recovered even very strongly directly upwards. It retraced sharply at 165.780 and bounced off the confluence zone. Now the price is pumped up to confront the 167.810 resistance level once again. The MA Cross (Moving Average) has crossed upward on confirmation of the rally.

Market Expectation

The EFI (Elders Force Index) line on both the daily chart and the 4-hour chart has risen strongly to a positive value. There is a bit of retracement at the moment, which causes the power line on the 4-hour chart to drop. The 165.780 key level is a trusted level for the bulls to take off again to finally violate the 167.810 resistance level.

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