GBP/JPY Inverted Triangle Upside Broken

Nenad Kerkez

Global equities rally that extended in Asia session weakened the Yen and it fell vs its main counterparts USD and GBP. Both USD/GBP/JPY are heavily connected to Equity markets and when Equities are going up both USD/JPY and GBP/JPY are going up too. The pair has formed an Inverted Triangle (ConTriangle) and subsequently broke its top so we might see a retest-continuation.

The POC (DPP, L3. ConTriangle top, 50.0, ATR PP) comes within the 141.85-142.00 zone. If the momentum persists and we don’t see any retracement, then traders should pay attention to a possible continuation above 142.95 towards 143.40 (breakout level) and 143.60 projected high. Overshot above 143.60 targets 144.20. For intact bullish scenario the pair should hold above 141.50.

GBPJPY Hourly Chart

GBPJPY Hourly Chart