GBPJPY Quickly Recovers From a Bearish Dip

GBPJPY Analysis-September 30

GBPJPY quickly recovers from a very strong dip that occurred on the back of the failure of the market to bypass 167.810. The market had done remarkably well to recover immediately. However, the price was only able to reach below the confluence of the 163.000 resistance level and the descending trendline. In addition, the market also has to contend with MA period 20, which is hanging above the market.

GBPJPY Key Levels

Supply Levels: 167.810, 163.000
Demand Levels: 159.680, 149.500

GBPJPY Long-Term Trend: Bearish

Despite the bullish orientation of the market, the price has not been able to bypass the 167.810 market limit. This has been the undoing of the buyers again and again. The price is seen to be drilling gradually towards the 159.680 critical support zone. The buyers kept putting up resistance though. Even on the 6th of September, the buyers sparked a surprise by spiking beyond the bearish hold.

Again, the price failed at 167.810. Though the market tried to hold on to the 163.000 price level, eventually it slipped up and plunged badly, dropping more than 8%. The bulls reacted sharply and drove the price back up with the same strength, but not fully back to where it dropped from. The stochastic line has turned sharply upwards from the oversold region. However, the candlesticks are yet to trade above the MA period 20 (Moving Average).

GBPJPY Short-Term Trend: Bullish 

The current pair will continue to punch upward with the hope of restating itself back above 163.000. The market is currently burdened by the additional pressure of the MA period 20 above it on the daily chart. However, the same MA period 20 has aligned itself below the candles on the 4-hour chart. The stochastic has risen to the overbought zone. GBPJPY is at a critical point and will need a lot of strength to push back above 163.000.

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