Hello friends, GBP/JPY has been trading in triangle since earlier this year as illustrated in the chart. We are currently at the apex of the triangle and will probably breakout before end of 2020! I believe the determining factor of the breakout will be the brexit updates and how the UK government contain the spread of the new strain of Coronavirus. Nevertheless, if we keep the fundamentals aside, the chart looks bullish and if you look in the higher timeframes (weekly/ monthly), you can clearly see a "W" formation which means a double bottom. I am favoring the long idea from here and expect the pair to break the triangle, head towards immediate resistance around 142 then come down to retest the broken triangle before shooting up. The pair formed solid support around 137.
I expect this pair to ultimately reach Jan 2018 high around 156 in the medium term especially if we get positive brexit news.
Please share your thoughts and if you like this idea, please like and follow.
Good luck!
I expect this pair to ultimately reach Jan 2018 high around 156 in the medium term especially if we get positive brexit news.
Please share your thoughts and if you like this idea, please like and follow.
Good luck!