By: Dima Chernovolov
GBP/JPY recently broke the hourly Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Falling Wedge at the 6-bar level – which is the result of the medium Initial Trend and Clarity (5 bars) and significant Uniformity (7 bars). GBP/JPY is expected to rise toward the forecast price 150.320 – in line with the recent upward reversal from the support area shown below.
As can be seen from the daily GBP/JPY chart below – the bottom of this Falling Wedge formed when the price reversed up from the support area lying between the support level 149.55 (which has been reversing the price for the last 6 trading sessions) and the 50-day moving average. The proximity of this support zone adds to the probability GBP/JPY will continue to rise toward the forecast price 150.320.