Trade of the Day: GBP/JPY

By: Dima Chernovolov

GBP/JPY continues to rise inside the hourly Triangle chart pattern which was previously identified by Autochartist. Autochartist measures the quality of this Triangle at the 4-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (7 bars) and lower Clarity (2 bars). GBP/JPY is expected to rise further inside this Triangle – in line with the earlier upward reversal from the powerful support level shown below.

As can be seen from the weekly GBP/JPY chart below – the price earlier reversed up from the support area located between the key support levels 126.00  (which previously stopped the weekly downtrend in the middle of 2019) and the lower weekly Bollinger Band. The proximity of this support area increases the probability GBP/JPY will continue to rise inside this Triangle.