Trade of the Day: GBP/JPY

By: Dima Chernovolov

GBP/JPY continues to rise inside the 4-hour Ascending Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 7-bar level – which is the result of the slow Initial Trend (3 bars), significant Uniformity and Clarity (7 bars). GBP/JPY 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 bottom of this Ascending Triangle formed when the pair reversed up from the support area lying between the key support level 141.30 (former resistance from October), lower daily Bollinger Band and the 38.2% Fibonacci correction of the previous upward impulse from  October. The proximity of this support area increases the probability GBP/JPY will continue to rise inside this Ascending Triangle.