GBPJPY Breakout Eyes 181- Long Scalps Favored Above 179
- GBPJPY breakout scalps in focus- near-term resistance 181.00/13
- Long scalps favored above 179
- Event Risk on TapThisWeek
Chart Created Using FXCM Marketscope 2.0
- GBPJPY breaches confluence slope resistance- breakout
- Key near-term resistance at 181.00/13
- Subsequent resistance objectives at 182.60 & 183.96-184.26
- Support at former April ORH (~179.00) - bullish invalidation
- First daily RSI breach above 50 since early February- constructive
- Event Risk Ahead: UK Retail Sales on Thursday & US Durable Goods Orders on Friday
Notes:GBPJPY has continued to trade within the confines of a well-defined pitchfork formation with today’s rally taking the pair through the monthly opening range highs at 179.25. Our bias remains weighted to the topside while above the operative median line with only a breach below the highlighted bullish invalidation level (just below 178.75) shifting the focus back to the short-side. Such a scenario targets 178.27 & weekly lows at 177.25.
Bottom line: looking for long-triggers while within this formation with key resistance seen at 181.00-181.13. Subsequent resistance targets are eyed at 182.00 & 182.60. A quarter of the daily average true range (ATR) yields profit targets of 33-36 pips per scalp. Caution is warranted heading into tomorrow’s UK Retail Sales print & US Durable Goods Orders on Friday with the release likely to fuel added volatility in dollar & sterling crosses.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
Other Setups in Play:
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- NZDUSD Breakout Stalls at 7700 Resistance- Short Scalps Pending
- USDCAD Short Scalps Face 1.2300 Hurdle Ahead of CPI
- AUDJPY Snaps 9 day Losing Streak- Long Scalps Favored Above 91.20
---Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
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