Forex Trading: GBPJPY Is Approaching Potential Price Reversal Zone at $141 Level

Forex Trading: GBPJPY Is Approaching Potential Price Reversal Zone at $141 Level
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GBPJPY Price Analysis – May 14

In case the demand level of $141 holds, the price may bounce and the trend may change to uptrend to target $145 level. Should the Bears increase their pressure and penetrate the barrier at $141 level, then $139 level will be the target.

GBP/JPY Market

Key levels:

Supply levels: $143, $145, $146
Demand levels: $141, $139, $137

 

GBPJPY Long-term trend: Bearish

GBPJPY is Bearish on the long-term outlook. Last week, GBPJPY was range-bound within the demand level of $143 and a supply level of $146. The Bears gained enough pressure to break out at $145 level and the GBPJPY price declined towards $141 level immediately the demand level of $143 was penetrated by the Bear’s momentum. Today’s daily candle is forming a Doji pattern at the demand level of $141; this is showing a weak bearish momentum.

GBPJPY Daily Chart, May 14

The 21 periods EMA has crossed 50 periods EMA downside and GBPJPY price is trading below the two EMAs; this indicates that the Bears are in full control of the GBPJPY market. The stochastic Oscillator period 14 with its signal lines are below 25 and the signal lines not showing specific direction indicates that the bearish trend is getting weak and the Bulls may take over.

In case the demand level of $141 holds, the price may bounce and the trend may change to uptrend to target $145 level. Should the Bears increase their pressure and penetrate the barrier at $141 level, then $139 level will be the target.

 

GBPJPY medium-term Trend: Bearish

GBPJPY is bearish on the medium-term outlook. The Bears pushed down the GBPJPY price after short consolidation on May 07. The bearish momentum placed the GBPJPY price at $141 level on May 13. A pullback was observed early today.

GBPJPY 4-hour chart, May 14

The Stochastic Oscillator period 14 is above 25 levels with the signal lines pointing down to indicate sell signal.

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About AzeezMustaph

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Azeez Mustapha is a technical analyst, has many years of trading experience in the stock exchange and the crypto markets. He has broad experience in Forex trading, coaching, and funds management

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