By: Dima Chernovolov
GBP/JPY continues to fall inside the clear Falling Wedge chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (3 bars), below-average Uniformity (4 bars) and significant Clarity (8 bars). GBP/JPY is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the of major resistance level shown below.
As can be seen from the daily GBP/JPY chart below, the top of this Falling Wedge formed when the price reversed down with the daily Japanese candlesticks reversal pattern Evening Star from the strong resistance level 151.20 (which also reversed the pair with the daily Bearish Engulfing in October). The proximity of this resistance level and the 50-day moving average (acting as resistance after it was broken recently) increases the probability GBP/JPY will continue to fall inside this chart pattern.
To subscribe to the e-mail alerts feature is quick and easy. Log into the Autochartist platform, click on ‘Alerts & Messaging’, enter your email address, select the market you want covered, select your language, and the time you want to get your report, and you’re done! You will now receive a quick morning technical outlook of the markets.
For further information on this and other Autochartist products visit www.autochartist.com