Conclusion for today’s GBPJPY analysis:
Resistance between 150.445 and 149.479 is crucial for price action, as well as the current symmetrical triangle chart pattern.
The GPJPY is examined today on its Daily timeframe with the main purpose of inspecting chart patterns and the guidance they offer concerning future development of price action.
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Coverage of price action is from April 17, 2017 to current date. February 02, 2018 produced a peak in price at ~156.608, after which the GBPJPY never recovered but rather sold off. This bearish trend is captured using a bearish channel that capitulated by reaching a price low of 130.699 on January 03, 2019.
The current bullish price swing that has lasted over 4 months (i.e. from 130.699) is currently trading under resistance that has been successfully tested in July, October and November of 2018.
A symmetrical triangle chart pattern is identified to highlight the meandering price action since March 13, 2019. The aforementioned chart pattern implies a balance between supply and demand (bears and bulls), as well as indecision.
Eventual breakout from the pattern should serve as a catalyst for the next price swing in the GBPJPY. Formation of the symmetrical triangle close to the lower boundary of resistance (149.479) is critical to pay attention and also momentum.
Conservative trades to the long (buy) side involve placing an order on a breakout above the upper boundary of resistance (150.445), while less conservative approaches would seek to buy the GBPJPY as soon as price breaches the upper boundary of the triangle.
Conversely, a less conservative strategy for selling includes placing an order on a break below 144.804, while conservative sell orders will either wait for a break below the triangle or when price closes below 141.009.
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