GBPJPY Market Becomes Overbought

Market Analysis – April 14

GBPJPY is currently ascending through a parallel channel. The 24-hour candles have struck the upper border of the channel even as the Stochastic is overbought. The Bears are expected to take advantage of a sell-off.

GBPJPY Key Levels

Demand Levels: 159.90, 156.70, 154.50
Supply Levels: 168.50, 171.20, 174.60

GBPJPY Long term Trend: Bullish

The GBPJPY market displayed a triple top chart pattern from November into December. After the Stochastic revealed the market was overbought at the formation of the third top, the higher band of the Bollinger also helped the supply zone of 168.50 form resistance in the market. A bombshell hit the market, and the market crashed vigorously from the 168.50 supply zone to the 159.90 demand zone.

After testing the demand level of 156.70, a triple bottom bullish reversal pattern formed. The price rose to test the bearish trendline at the key level of 164.10. After a retracement to a bullish order block in March, the buyers launched an attack to invalidate the bearish trendline. The retest of the trendline has provided support to push above 164.10.

GBPJPY Short-term Trend: Bullish

The candles have tested the resistance trendline of the channel. The decline of the market is also obvious on the Stochastic Oscillator as it swerves away from the overbought region to the oversold region on the 4 hour chart. The market is expected to make a pullback to the 164.10 demand level.

Do you want to take your trading to the next level? Join the best platform for that here