GBPJPY Price Stays Inclined to the Downside Awaiting Further Bearish Momentum

GBPJPY Price Analysis – March 4

The price is moving south with a positive momentum of selling, while the pair’s inability to record any significant recovery from the important merger area near the 137.00 level suggests that the recent selling pressure may still be far from stopping. While the market fear of coronavirus (COVID-19) continues to put pressure on the pair, recent positive results in Asian stocks seem to have supported the pair.

Key Levels
Resistance Levels: 148.66,144.95, 141.24
Support Levels: 137.00, 130.49, 126.54

GBPJPY Long term Trend: Ranging

The high of September 2019, surrounding 135.75 level, may attract the attention of bears as soon as the pair closes beneath the 137.00 level on the daily chart. Meanwhile, any recovery beneath the November 2019 low close to 140.55 level seems perfect.

In the long run, a deviation from the resistance level of 148.66 suggests that an increase from the level of 126.54 is probably only the third stage of the consolidation model from the level of 122.75 (low level). A break of the support level of 126.54 will resume a stronger downtrend from 195.86 (high) level to a low of 122.75 level.

GBPJPY Short term Trend: Bearish

The intraday bias in GBPJPY stays at a downward level with a slight resistance level of 139.18, while the current decline from 147.95 level may approach a partial pullback of 126.54 to 147.95 from 130.49 level in the following.

On the other hand, secondary resistance levels past 139.18 can primarily change the neutrality of intraday bias. But the risk may quite stay on the downside, while the resistance level of 144.95 stays unchanged.

Instrument: GBPJPY
Order: Buy
Entry price: 138.00
Stop: 137.00
Target: 139.18

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