Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY recently broke the hourly Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the slow Initial Trend (3 bars), average Uniformity (5 bars), and significant Clarity (7 bars). GBP/JPY is expected to rise toward the forecast price 153.79.
As can be seen from the daily GBP/JPY chart below – the pair earlier reversed up from the support area lying between the key support level 153.00 (previous monthly low from January), lower daily Bollinger Band and the 61.8% Fibonacci correction of the previous sharp upward impulse from last December. The proximity of this support area adds to the probability GBP/JPY will continue to rise toward the forecast price 153.79.