Trade of the Day: GBP/JPY

By: Dima Chernovolov

GBP/JPY recently broke the daily Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 7-bar level – which is the result of the slow Initial Trend (1 bars), significant Uniformity (7 bars) and lower Clarity (3 bars). GBP/JPY is expected to rise toward the forecast price 171.15.

As can be seen from the daily GBP/JPY chart below – the pair previously broke above the key resistance level 167.70 (which has been reversing the pair from April). This price level is acting as the strong support level after it was broken. The proximity of this support level increases the probability GBP/JPY will continue to rise toward the forecast price 171.15.