GBPJPY ascending triangle looking bullish
The GBPJPY pair is currently trading within an ascending triangle formation, following a major round of buying in the past month and a half. Given both the technical and fundamental outlook, I expect to see the pair break out to the upside for a continuation higher.
The daily chart shows that the pair is currently within a period of consolidation within a long term uptrend. The decision from the BoJ to implement a further Y30 trillion per year, on top of the Y50 trillion already previously in play means that the Japanese currency has been selling off across the board. On the hourly chart, there is a clear ascending triangle formation, which is by its nature a bullish pattern, especially in an uptrend. With the pair currently at the bottom of this formation, I expect to see a move higher overnight and ultimately I believe we will see the price come outside the top end of the formation. However, this would be invalidated by a move lower and a close below the ascending green trendline.
About Joshua Mahony
Joshua Mahony is Research Analyst at Alpari UK. Having joined in 2012, Josh’s previous experience in the industry includes time spent on the trading floor at Barclays Capital and working for Deutsche Bank in New York for a year. Originally coming from an economics background, Josh then traded equities in the wake of the 2007/2008 financial crisis. He is now turning that experience towards the forex markets. Josh writes market commentary that has featured on websites and publications including the Financial Times, Reuters, the Guardian, ABC News, CityAM, the Washington Post and the Miami Herald. You can follow Josh’s analysis on Twitter, and Google+