Trade of the Day: GBP/JPY

Posted on March 11, 2021 by Sam Trinston wrote in Market Analysis.

By: Dima Chernovolov

GBP/JPY continues to rise inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 5-bar level – which is the result of the medium Initial Trend (5 bars), lower Uniformity (3 bars) and above-average Clarity (6 bars). GBP/JPY is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance levels show below.

As can be seen from the weekly GBP/JPY chart below – the price previously broke through the 3 consecutive, multi-month resistance levels – 147.80, 148.7 and 149.55 (which have been reversing the price from 2018, 2019 and 2020 respectively). All of these resistance levels are currently acting as the strong support levels after they were broken. The proximity of these support levels and the strong weekly upward impulse increase the probability GBP/JPY will continue to rise inside this 4-hour Up Channel.