For the GBPJPY pair, an uptrend is expected to form, which moves inside the green channel. The current chart shows the market movement since mid-March of this year.
SimpleFX GBPJPY Chart Analysis: April 27, 2022
In mid-March, the price touched the lower green line, then it pushed off from it and began to grow rapidly towards the upper green line. In half a month, the market reached the upper green wall, but the bulls failed to break through it, so the price began to move in the opposite direction. However, having reached the middle, the bears weakened and surrendered their positions to the bulls, that is, the price crept back to the upper green line. The last section of the chart describes a descending yellow channel.
Currently, the market is in the lower green area. It is assumed that the price will soon reach the lower green line. If the bears are able to break through the support level of 159.50, then the pair will continue to depreciate to the next support level of 154.54, which is located on the lower yellow wall.
Alternatively, it is assumed that the bears will not be able to break through the green support line, then the price can push off from it and start an upward movement. In this case, market participants can expect the development of a bullish trend in the direction of the upper yellow line and the resistance level of 165.38. At the breakdown of this level, the price will continue to grow in the direction of the upper green line and the resistance level of 171.73.
