Consolidates Before New Direction
Updated
GBPJPY Price Analysis
The GBPJPY shows a very clear bullish trend on the daily chart. Tide may soon change as the trend is seen to fade into a consolidation. Price has been ranging between 148.500 and 153. 500
GBPJPY Price Prospects
Prices have been rising and falling between the borders of the Bollinger Bands since the 18th of March. This is quite different from January into early March where the candles on the daily chart have rested above the middle line of the Bollinger band showing a strong bullish trend. The consolidation may just be signs of a reversal. The consolidation may lead to breaking out lower from the ranging market.
The (ADX) Average Directional Index dropped from its highest this year at 56.71 on the 18th March where the consolidation started with a short-term drop in price. It is currently at 19.80 at the time of writing which shows the market's indecision. The market would eventually break out after consolidating. It may break out into resistance of last year December at 137.000. It may also break out to form a new yearly high
GBPJPY Key Levels:
RESISTANCE: 153.500, 152.500
SUPPORT: 149.500, 148.500
The GBPJPY shows a very clear bullish trend on the daily chart. Tide may soon change as the trend is seen to fade into a consolidation. Price has been ranging between 148.500 and 153. 500
GBPJPY Price Prospects
Prices have been rising and falling between the borders of the Bollinger Bands since the 18th of March. This is quite different from January into early March where the candles on the daily chart have rested above the middle line of the Bollinger band showing a strong bullish trend. The consolidation may just be signs of a reversal. The consolidation may lead to breaking out lower from the ranging market.
The (ADX) Average Directional Index dropped from its highest this year at 56.71 on the 18th March where the consolidation started with a short-term drop in price. It is currently at 19.80 at the time of writing which shows the market's indecision. The market would eventually break out after consolidating. It may break out into resistance of last year December at 137.000. It may also break out to form a new yearly high
GBPJPY Key Levels:
RESISTANCE: 153.500, 152.500
SUPPORT: 149.500, 148.500
Note
Note
On the 4-hour chart, the range is clearly seen as the candles jacks into both borders of the Bollinger band. The ADX on the 4-hour chart also shows market trend weakness currently on the 24.81 mark.The Bollinger Bounce strategy may be employed to buy and sell at the borders of the Bollinger bounce. The Bollinger squeeze strategy may also be used for patient traders to anticipate a squeeze and then a break out into the upper or lower part of the range.
It is important to consider proper risk management as there might be subsequent false breakouts
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