Forex Trading: GBPJPY Is Range-Bound Within $143 and $146 Level, Expecting a Breakout

Forex Trading: GBPJPY Is Range-Bound Within $143 and $146 Level, Expecting a Breakout
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GBPJPY Price Analysis – May 07

Until the Bears and the Bulls have enough pressure to push the price beyond the $143 and $146 respectively, the ranging movement may continue.

GBP/JPY Market

Key levels:

Supply levels: $145, $146, $148,
Demand levels: $143, $141, $139

 

GBPJPY Long-term trend: Ranging

On the long-term outlook, GBPJPY is ranging. GBPJPY is range-bound within the demand level of $143 and a supply level of $146 since March 21 till date. The bullish momentum topped the currency pair at $148 on March 13, it consolidated for four days before the Bears pushed the pair down to $143 level and since then the Bears lost the momentum to push the currency down beyond $143 level. The Bulls also don’t have enough pressure to push the price beyond the level of $146.

GBPJPY Daily chart, May 07

The 21 periods EMA and 50 periods EMA are flat horizontally at the level showing no significant direction and the GBPJPY is trading over and around the two EMAS; this indicates that consolidation is ongoing in the GBPJPY market. The Moving Average Convergence Divergence period 12 with its histogram is flat to the zero levels and the signal lines lay flat at the zero levels which connote that consolidation may continue for a short period of time. Until the Bears and the Bulls have enough pressure to push the price beyond the $143 and $146 respectively, the ranging movement may continue.

GBPJPY medium-term Trend: Bearish

GBPJPY is bearish on the medium-term outlook. The GBPJPY price dropped from the high of $146 to the low of $143 after broken down the barrier at $145 level. The price bounced at the level and rallied towards $145 level. On May 03, the bulls sporadically pushed up the GBPJPY price towards $146 but rejected by the Bears.

GBPJPY 4-hour chart, May 07


The MACD period 12 and its histogram is below zero levels with the signal line pointing down; this indicates sell signal and a further reduction in GBPJPY price.

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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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