GBP/JPY moves sideways in the short term as the Japanese Yen is still strong as long as JP225 maintains a bearish bias. Technically, the pair has developed a symmetrical triangle. This pattern could represent a continuation chart formation.
The price tries to stabilize above the broken upside obstacles before resuming its upwards movement. GBP/JPY needs a bullish spark to be able to develop important growth. The Japanese Average Cash Earnings and the Household Spending could bring something in the early morning.
GBP/JPY moves sideways after escaping from the descending pitchfork’s body. Failing to approach and reach the median line (ML) could signal a potential growth towards the 155.15 high.
Making an upside breakout from the current triangle and jumping above 153.96 high could confirm a strong leg higher. Technically, it’s hard to believe that GBP/JPY could drop from here. So, we’ll have to wait for confirmation before jumping into a long position again.
The descending pitchfork’s warning line (WL1) could be used as an upside target if GBP/JPY resumes its growth.
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