The GBPJPY Market Respects the Bearish Order Flow

Market Analysis – March 10

The GBPJPY market is respecting the bearish trendline on the daily timeframe. A lower high was formed on the bullish trend, which initiated the downward trend in the market. The failure swing was observed in October. The market is yet to recover from the long-term bearish trend.

GBPJPY Key Levels:

Supply Levels: 168.80, 171.80, 176.00
Demand Levels: 160.85, 156.00, 150.80

GBPJPY Long-term Trend: Bearish

GBPJPY was stuck in November and early December between the significant levels of 168.00 and 164.50. The market experienced a breakout on December 13th. The breakout was experienced immediately after the crossing of the Moving Averages. A bearish order block was deposited unmitigated before the bearish displacement .

In January, the contention of the buyers and sellers resulted in the formation of a double bottom bullish reversal pattern. The MACD (Moving Averages Convergence and Divergence ) crossed in the oversold region to indicate a bullish reversal. Similarly, The Moving Averages also crossed to signify a trend reversal. The market has ascended to test the bearish order-block on the  daily chart. A rejection candle above 164.50 showed the influx of the sellers. The MACD Is currently turning bearish on the daily chart as the daily candles have fallen below the Moving Averages (periods nine and twenty one).

GBPJPY Short-term Trend: Bearish

The market structure is bearish on the 4 hour chart. The price is likely going to be pulled by the liquidity region at 156.00. The Moving Averages are also resting above the candles to show a bearish trend.

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