GBPJPY Market Is Set Into Consolidation as neither Buyers nor Sellers Dominate

GBPJPY Analysis – December 2

GBPJPY market is being forced into a consolidation phase as neither buyers nor sellers currently have the upper hand. The market has been in a ranging phase since the beginning of the second quarter of the year. Although the market’s range was much wider at the time, with 168.720 as resistance and 159.490 as support, due to the strong showing by the bulls in recent times, the consolidation support has risen to 164.120.

GBPJPY Significant Zones

Resistance Levels: 172.070 168.720
Support Levels: 164.120, 154.490

GBPJPY Long-Term Trend: Ranging

The price burst above the 159.490 key level precisely on the 22nd of March, and since then, the price has been trying to also break above the next resistance level at 168.720. This was the new saga that dragged all through the year until October. The market weakened a couple of times and dropped below the 159.490 support, but it always bounced back and got stronger.

When the currency pair fell below the 159.490 support level in late September or early October, the market rallied strongly, even breaking through the 168.720 resistance level. However, that position will not last long as the GBPJPY weakens and drops below it. Nevertheless, the price is holding above higher support at 164.120. As the market remains trapped above 164.120, the Bollinger Bands have begun to encircle it.

GBPJPY Short-Term Trend: Bullish

The Stochastic Oscillator lines on the daily chart also indicate consolidation as it doesn’t rise or drop below the oversold or overbought borders. This is the same on the 4-hour chart, with more pressure on the oversold border. The display of the Bollinger Band on the short time frame is also showing consolidation as it is mostly below the 168.720 resistance and above the 164.120 support. Market consolidation will continue for a while, with buyers most likely to break the trend.

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