Skip to Content
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.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
GBP/JPY Technical Analysis: Next Directional Move Proving Elusive

GBP/JPY Technical Analysis: Next Directional Move Proving Elusive

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

  • GBP/JPY Technical Strategy: Intermediate-term: Congested, short-term: Expansionary pattern (megaphone).
  • GBP/JPY finally broke out of the month-old wedge, but sellers were unable to create significant drive sub-139.00.
  • If you’re looking for trading ideas, check out our Trading Guides. And if you’re looking for ideas that are more short-term in nature, please check out our Speculative Sentiment Index (SSI) Indicator.

In our last article, we looked at an expansion in price action in GBP/JPY with the aim of finding the next directional move after GBP/JPY had spent much of the prior three months building into a symmetrical wedge pattern. And while we did see a bottom-side break of the wedge before that megaphone pattern had showed-up, the inability of bears to push prices significantly below prior support made short-exposure in the pair a bit less attractive. Since then, we’ve seen price action volley back towards the projected trend-lines that made-up that symmetrical wedge pattern:

Chart prepared by James Stanley

In our last article, we looked at how to work with a megaphone pattern, biasing the top-side of the pair and looking to the level of resistance at 140.62 to signal top-side continuation potential. This level has come in as short-term resistance, so it would still be as usable today in the effort of catching bullish continuation in GBP/JPY.

Chart prepared by James Stanley

Given the various levels of resistance sitting just above current price action in GBP/JPY, traders can use these levels in the effort of timing a top-side approach. Secondary levels of resistance around 141.03 and 141.60 could become usable. Should bulls pose a break of the 140.62 zone, traders can wait for resistance to show up at a secondary level; at which point they can attempt to catch a ‘higher-low’ around 140.62 in the effort of a top-side, continuation-based approach.

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES