FX.co ★ FX-Perfact | GBP/JPY

GBP/JPY H4 Timeframe: Based on the GBP/JPY chart on the H4 timeframe, price movement indicates that the market was previously in a fairly strong uptrend, but recently experienced a significant structural change. After peaking around 214.90, the price experienced sharp selling pressure, marked by an aggressive decline that penetrated several key support levels and moved below the 100-day moving average (blue line) and 200-day moving average (red line). This decline was an early indication of a change in momentum from bullish to bearish in the medium term. Following this decline, the price formed a low around 207.20–208.00. This zone witnessed a strong buying reaction, which pushed the price upward gradually. The subsequent structure showed a consolidation phase with a tendency to form higher lows, indicating that selling pressure was easing and buyers were regaining control of the short-term movement. In the latest conditions, the price managed to break through the minor resistance area around 209.50 and is currently moving closer to the psychological level of 210.00. This increase also brings the price closer to a key zone that coincides with the 100- and 200-day moving averages, currently located around 210.20. This zone is crucial because, in addition to serving as a previous horizontal resistance level, it also serves as dynamic resistance that can determine the direction of future movement.

If the price manages to break through and maintain above the 210.20 level with strong momentum, this would signal an early structural shift from bearish to neutral, even opening the possibility of a medium-term trend reversal. In this scenario, the potential for further upside towards the next resistance level at 211.70 to 212.50 would be even greater. If buying momentum persists and the price successfully breaks through this zone, the next target is the 213.70 area. Conversely, if the price fails to break through the 210.20 area and shows strong resistance, the pair will likely return to a consolidation phase or even resume downward pressure. The nearest support is at 209.50, followed by the key zone at 208.00. A break below this level would indicate that bearish pressure remains dominant and open the possibility of a further decline towards the previous low around 207.20. From a trend perspective, the downward slopes of the 100- and 200-day moving averages indicate that the medium-term trend remains under bearish pressure. However, the price's approach to these two indicators indicates that the market is in a trend strength testing phase. This condition often determines whether the market will continue its downtrend or enter a broader recovery phase. Overall, GBP/JPY is currently in a transition phase following the previous sharp decline. Short-term momentum is starting to show signs of recovery, but confirmation of a trend change still depends on the price breaking through and holding above the key resistance zone around 210.20. Until this area is convincingly broken, the medium-term bias remains cautious, with the potential for selling pressure to re-emerge at any time. Price movement around the current resistance area will be a key factor in determining the pair's dominant direction over the next few sessions.