Daily Forex Update: GBP/JPY

By: Dima Chernovolov

GBP/JPY continues to rise inside the clear hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 3-bar level – which is the result of the slow Initial Trend (one bar), below-average Uniformity (4 bars) and medium Clarity (5 bars). GBP/JPY is expected to rise further inside this Up Channel in line with the earlier breakout of the resistance area shown below.

As can be seen from the daily GBP/JPY chart below, the price recently broke the resistance area lying between the strong resistance level 150.80 (which has been reversing the price from the middle of February) and the 50% Fibonacci correction of the downward impulse from January. This price zone is acting as support area after it was broken. The proximity of this support area increases the probability GBP/JPY will continue to rise inside this Up Channel.

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