News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
GBP/JPY Pending Daily Breakout

GBP/JPY Pending Daily Breakout

Walker England, Forex Trading Instructor

Market Condition: GBP/JPY Pending Daily Breakout

Target 1: 1X Reference 391 Pips

Target 2: 2x Reference 782 Pips

Invalidation: Continued Consolidation

GBP/JPY Daily Chart

GBP/JPY Pending Daily Breakout

(Created using Marketscope 2.0 Charts)

After declining to a new monthly low earlier in the week, the GBP/JPY is now consolidating with a series of inside bars. Using Wednesdays daily high as a reference, resistance for the pair is currently found at 132.51. Support may be found at Wednesdays low at a price of 128.60. Traders may reference these values, and continue to monitor market conditions for a breakout either above resistance or below support.

Traders should note that Wednesday’s reference bar measures 391 pips. Traders may use a 1X extension to find initial profit targets. Half of this range, 195 pips, may be used for stop placement. This creates a 1:2 Risk/Reward ratio for an attempted breakout.

In the event that prices fail to breakout, traders may elect to trade the continued consolidation between the previously mentioned values of support and resistance.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES