Daily Forex Update: GBP/JPY
By: Dima Chernovolov
GBP/JPY continues to fall inside the well-formed Falling Wedge chart pattern which was previously identified by Autochartist on the hourly charts. Autochartist measures the Quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars) and significant Uniformity Clarity (both rated at the 7 bar level). GBP/JPY is expected to fall further inside this chart pattern – in line with the active downward impulse from the powerful resistance level described below.
As can be seen from the daily GBP/JPY chart below, the top of this Falling Wedge formed when the pair reversed down from the major, multi-month resistance level 147.70 (which has reversed the previous sharp upward impulses in December and May). The proximity of the resistance level increases the probability GBP/JPY will continue to fall inside this chart pattern.
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