The current formation of the GBPJPY pair suggests the development of a sideways trend that moves smoothly inside the green channel with a slight upward slope.
SimpleFX GBPJPY Chart Analysis: January 5, 2022
From the end of October 2021 to the beginning of December, the price moved from the upper green line to the lower green line. We see that the bears could not break through the lower green wall, the price pushed off from it and began to move in an upward direction.
After December 21, bulls began to push the market up more actively. This period describes a small yellow channel. Perhaps, if the bulls continue to act in the same spirit, they will soon reach the resistance level of 158.22. With a successful breakdown of this level, a path will open for them to the upper yellow wall and the resistance level of 162.40.
It is possible that with such a rapid rise, the bulls could run out of strength, and it is possible that they will no longer be able to lead the market. In this case, the price will start to decline. The first target that is on the way for the bears is the support level of 155.22, located on the lower yellow line. At the breakdown of the specified level, a bearish trend will be confirmed, and then the price decline will continue. The next obstacle in the way of bears is the moving average line. To strengthen their positions, the bears need to break through the support level of 154.41, then we will be able to observe a fall in the exchange rate to the lower green line and the support level of 148.99.
