GBPJPY Reaches Confluence Point

Market Analysis – January 13

GBPJPY tapped into the liquidity resting above the relative equal highs at 168.00. The breakout above 168.00 did not hold for long before the market reversed. The market was trapped between the supply zone at 168.00 and the demand zone at 160.80. The market consolidated from May to September. Immediately after the consolidation, a stop-run above the range was observed.

GBPJPY Key Zones

Demand Levels: 156.00, 150.80, 148.40
Supply Levels: 168.00, 171.80, 175.50

GBPJPY Long-term Trend: Bearish

The price reached 171.80 in October. The Williams % Range indicated that the market was overbought. A bearish shift in market structure played out immediately. The Moving Averages also crossed to confirm the new bearish trend. The market purged immediately after the retest of the bearish order block at 168.00.

A triple-top pattern appeared at the 168.00 zone. Opportunities were provided for the sellers to get engaged in the market. The market crashed afterwards to 156.00. Since the bearish market reversal, the price has fallen by over 9.55 per cent.

GBPJPY Short-term Trend: Bearish

The bullish trend line and the 156.00 demand level have crossed the daily time frame to form a confluence point. The candles have dived into the confluence region. A retracement towards 160.80 is anticipated on the GBPJPY market.

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