GBPJPY has reached a critical juncture, reacting to a resistance level of 199.720, a price point first encountered at the inception of July. Despite several days of concerted effort to breach this level, the attempted breakout ultimately failed, causing the price to plummet below the last swing low. Nevertheless, buyers are regrouping and ascending in preparation for a renewed assault on the resistance level, to achieve a successful breakout.
GBPJPY Key Levels
Demand Levels: 184.370, 178.090
Supply Levels: 199.720, 207.820
GBPJPY Long-term Trend: Bullish
A closer examination of the long-term trend reveals a bullish bias. Notably, October 2024 witnessed a bullish trend undergo a bearish reversal at the 199.720 level. Since then, buyers have struggled to breach this key resistance level, only managing to reach it again last month. However, the ascent beyond this price proved abortive, and the market experienced a temporary consolidation phase.
At the beginning of August, the price fell below the last major swing low formed before the resistance zone was reached, suggesting that larger market players, often referred to as “whales,” are engineering a bullish ascent in preparation for an attack on the resistance zone, utilizing the liquidity below the swing low to fuel their strategy. Notably, only bullish candles have formed after the sweep low, indicating strong upward momentum as the price approaches the resistance line.
GBPJPY Short-term Trend: Bullish
In the short term, the trend is also decidedly bullish. The Moving Averages with periods of 20 and 30 have crossed over, signaling a bullish reversal on the lower timeframe. Moreover, a bullish trend is already firmly established on this timeframe, with the price now racing towards the resistance level of 199.720 in an attempt to achieve a breakout. As the price action unfolds, market participants will be keenly watching for a successful breach of this critical level, which would likely have significant implications for the pair’s future direction.
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GBPJPY Short-term Trend: Bullish
GBPJPY Short-term Trend: Bullish
