GBPJPY Price Is Approaching Demand Level of $130, a Potential Price Reversal Zone

GBPJPY Price Is Approaching Demand Level of $130, a Potential Price Reversal Zone
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GBPJPY Price Analysis – July 30

The price may reach the previous low at demand level of $130; this level is a potential price reversal zone. Should the Bears are able to penetrate the demand level of $130; the price may find support at $127 price level.

GBP/JPY Market

Key levels:

Supply levels: $135, $138, $141
Demand levels: $130, $127, $123

 

GBPJPY Long-term trend: Bearish

GBPJPY is bearish on the long-term outlook. The Price initially pulled back last week towards the supply level of $135 but could not break up the confluence at the level. As it was predicted last week, the bearish engulfing candle was produced and the price decreased further under the Bears’ pressure. The price moved down towards the demand level of $130 and this may be the target.

GBPJPY Daily chart, July 30

The GBPJPY continue trading below the 21 periods EMA and 50 periods EMA at a farther distance to each other as a sign of strong bearish momentum. The price may reach the previous low at demand level of $130; this level is a potential price reversal zone. Should the Bears are able to penetrate the demand level of $130; the price may find support at $127 price level. Meanwhile, the Stochastic Oscillator period 14 is above 25 levels and the signal lines pointing down to indicate a sell signal.

GBPJPY medium-term Trend: Bearish

GBPJPY is bearish on the medium-term outlook. On the 4-hour chart, GBPJPY was consolidating last week at the supply level of $135. On July 26, there was a bearish breakout with the formation of strong bearish candles followed by stronger massive bearish candle. The price declined towards the demand level of $130.

GBPJPY 4-hour chart, July 30

The currency is no longer hovering over the two EMAs but rather trading below the 21 periods EMA and 50 periods EMA to indicate that the Bears are in control of the market.

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About AzeezMustaph

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