GBPJPY Resumes the Market Trend in an Upward Direction

GBPJPY Analysis – July 15

GBPJPY resumes the market trend upward from the 157.800 demand zone. The GBPJPY market was trending upward until February 24, 2021, when bulls drove the price past the previous resistance level. Following this breakout, the market’s prices began to struggle between two major levels.

GBPJPY Major Levels

Resistance Level: 168.430, 175.500
Support Level: 157.800, 149.000

GBPJPY Long-term Trend: Bullish

Price had been ranging between two significant levels, 149.000 and 157.800, since the successful breakout in an upward direction from the previous resistance level of 149.00, until March 22, 2022. This month, the price broke through another previous resistance level. It turned it into a major support level, preventing the market trend from crashing further downward after hitting the significant resistance level of 168.480.

Over the last three months, the significant resistance level at 168.430 has proven very strong, preventing prices from breaking through. While there appears to be no change in the market trend for the time being, it is expected that the price will continue to hit the resistance level at 168.430 until the Bollinger Bands (BB) expand upward, at which point the price will break through and continue its upward trend. The trendline connecting the three most recent lows confirms the market’s upward trend.

GBPJPY Short-Term Trend: Bullish

A bullish divergence can be seen on the four-hour timeframe chart as prices form lower lows. The Relative Strength Index (RSI) also forms higher lows; this confirms that the market is about to resume its upward trend while forming higher lows. The four-hour timeframe shows the price reacting to an order block that caused the price to break the market structure (BOS) downward. As the market trend continues upward, this order block will later serve as a breaker. After the market stops ranging between the two significant levels at 157.800 and 168.430, the market is expected to break through the significant resistance level at 168.430 and possibly retest it, continuing the market trend upward.

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