GBPJPY Races to Resistance Zone

Market Analysis – July 4

GBPJPY has formed a very accurate market structure. This structure consists of consistent higher lows racing towards the resistance level of 199.810. The bullish ascent started from the demand level of 184.360. Importantly, it has maintained structural integrity throughout. There has been no single-stop run. Furthermore, no lower high has formed. Overall, this clean progression reflects strong bullish momentum.

GBPJPY Key Levels

Demand Levels: 188.090, 184.360, 180.530
Supply Levels: 199.810, 206.160, 210.000

GBPJPY Long-term Trend: Bullish

After a long period of staggered trends, GBPJPY finally delivers a clearly defined trend. Moreover, this trend is highly accurate. Previous directional movements, both upward and downward, have been relatively short-lived. Interestingly, the past downtrend featured higher highs. This is a classic market behavior. Specifically, it is used to induce false breakouts and trap traders out of position.

However, the current bullish trend commenced with a sharp rejection candle at 184.360. At that moment, the Hull Butterfly Oscillator signaled that the price was oversold. In confirmation, the price action extended below the lower Bollinger Band. Consequently, this reinforced the oversold condition. Ultimately, it marked the beginning of a major reversal.

Throughout the ongoing uptrend, every single major swing low has formed higher than the last. This is an uncommon trait in prolonged trends. Usually, stop hunts are frequent in such trends. Currently, the price has already breached the key resistance level of 196.420. Now, it is on the verge of breaking above 199.810. Therefore, this suggests a potential continuation to higher levels.

GBPJPY Short-term Trend: Bullish

The most recent swing low has respected the bullish trendline. Thus, this further validates the ongoing trend. Price is projected to continue its expansion. Specifically, it is heading toward the 199.810 resistance zone. Potentially, it could move beyond this level. Consequently, this level presents a safe and strategic short-term target. Moreover, it offers high-probability forex signals.

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