Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY continues to rise inside the 4-hour Ascending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 3-bar level – which is the result of the slow Initial Trend (1 bar) and strong Uniformity (8 bars). GBP/JPY is expected to rise further inside this Ascending Triangle – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily GBP/JPY chart below – the price earlier reversed up from the support area lying between the key support level 141.30 (former resistance from October and November), lower daily Bollinger Band and the 38.2% Fibonacci correction of the previous sharp upward impulse from October. The proximity of this support area increases the probability GBP/JPY will continue to rise inside this Ascending Triangle.