GBPJPY Upside Move Stays Capped by the Barrier at 136.62 Level

GBPJPY Upside Move Stays Capped by the Barrier at 136.62 Level

GBPJPY Price Analysis – October 18

GBPJPY tends to have been capped at 136.62 level around the upside horizontal barrier after attempts to drive higher were curtailed on the daily chart by the moving average of 5 and 13. The pair is edging sideways as the trend has been taken by horizontal traction.

Key Levels
Resistance Levels: 147.95, 142.71, 137.84
Support Levels: 135.38, 133.04, 131.75
GBPJPY Long term Trend: Ranging
In the wider sense, the increase from the level of 123.99 is only seen as an increasing phase of the sideway consolidation trend from the level of 122.75 (low). As long as the level of resistance is 147.95, a potential downside breakout stays in support.

The weakening curves of the intersecting MA 5 and MA 13 have embraced a sideways market amid the recent bullish crossovers. Even so, the firm breach of the 147.95 marks may increase the probability of a bullish long-term reversal. For validation, the emphasis may then be switched to a 156.59 resistance level.
GBPJPY Short term Trend: Ranging
Last week, GBPJPY declined slightly to 135.38 but bounced back. Second, this week’s initial bias holds firm. On the upside, the recovery from level 133.04 to re-test high level 142.71 may continue beyond level 137.84. Currently, the short-term oscillators in the directional traction represent mixed signals.

On the downside, a steady break from the support level of 135.00 might well mean that the recovery from the level of 133.04 has concluded. In this scenario, the plunge from the level of 142.71 is also restarting. For the level of 133.04, and then 61.8 percent retracement from 123.99 to 142.71 at 131.75 levels, intraday bias might be turned back to the downside.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.