GBP/JPY @Major Key level Analysis 02.05.2015

FX:GBPJPY   British Pound / Japanese Yen
This pair shows a nice uptrend and we currently came to an halt at a very important key level @185 ,which is the
50% retracement level of the downmove from 2007-2009, price reacted at this level but we didnt rejected it , ie. price
is holding its gains thus far and forming a range, where the resistance is @185 and support is a former broken
resistance level @174.5 ,

we have to take notice the buying pressure was stronger as we approached the 185 level as can be seen on the
pace,momentum and extend of the rallys which are steeper and longer then the selling waves , however
as we sit at this resistance level we not only found balance in the form of the trading range but in
the buying vs. selling pressure aswell it is not quite clear who has the upperhand right now, therefore we need
further signs to judge the course of the market , whereas a break of resistance + a successfull retest (pullback)
indicates strenght , while a break of the demandlevel (green) followed by a lower high can be seen as weak
however true weakness will reveal itself if we break support @174.5 and price trades back below the fromer range

Signs of Strenght:
  • Up Trend
  • Broken resistance turned support
  • Holding gains

Signs of Weakness:
  • 185 key level still holds (50%)
  • buying vs selling pressure equals out (sellers confront buyers )

Key Level above current price:

Key level below current price:

A 50% retracemnt level can be used to judge a markets strenght or weakness , as usually if price trades right thru
such level one can think of participants capitulate , whereas if we hold/reject such a level one can assume that
either the trading activity is lacking and therefore price is of unfair value (rejection) or this level can be seen as a new
opportunity for participants to get into the market at a better price to anticiate a further move in the preceeding
direction , (increased activity ), so it all boils down to what price is capable to do and what not ,at certain levels
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out