GBPJPY – Possible inverse head and shoulders forming
Monthly: The sequence for trading on the monthly chart is of higher highs and lows. The pairs is trading in a bullish channel formation. The upper end of the channel comes in at around 164.00. A break of 140.00 would invalidate the bullish channel.
Weekly: Price action continued to range between key support & resistance (139.89 & 149.73) and we expect this to break soon. Bespoke resistance is located at 149.73. News events could adversely affect the short to medium term technical picture.
Daily: In line with the possible early stages of a reverse head & shoulders pattern and the strong rejection of dips, we look to set longs in anticipation of a swing higher. A break of 145.95 is needed to confirm follow through bullish momentum. A break of the neckline is required to confirm the formation. Neckline resistance 149.31. Further upside is expected, however, due to the strong resistance above we prefer to buy a break of 146.05, which will confirm the bullish sentiment
Action:
We look to Buy a break of 146.05
Stop: 144.50
Targets: 149.30 and 153.80
Risk Warning
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Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with spot foreign exchange and futures trading, and seek advice from an independent financial advisor (IFA) if you have any doubts. All information posted on this website is of our opinion and the opinion of our visitors, and may not reflect the truth. Please use your own good judgment and seek advice from a qualified consultant or IFA, before believing and accepting any information posted on this website.
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Losses can exceed deposits