GBP/JPY Reviewed after CPI release
The situation on the GBP/JPY currency pair has been massively affected by the various fundamental events on both sides of the rate. First of all the British macroeconomic data releases have forced the pound higher.
Secondly, the Japanese Yen has fallen due to the recent turmoil on the Korean peninsula.
However, the surge can be mapped by a short term channel up pattern. Although, the channel has already reached the upper boundary of a recently spotted dominant ascending channel pattern.
Due to that reason it can be expected that the junior pattern will be broken and the pair will decline down to meet with the 55-hour SMA.
Secondly, the Japanese Yen has fallen due to the recent turmoil on the Korean peninsula.
However, the surge can be mapped by a short term channel up pattern. Although, the channel has already reached the upper boundary of a recently spotted dominant ascending channel pattern.
Due to that reason it can be expected that the junior pattern will be broken and the pair will decline down to meet with the 55-hour SMA.
Trade closed: stop reached:
Initially profit could have been taken until the release of the UK monetary policy data, when the Pound jumped, was slowed down by the long term resistance line, but eventually managed to reach above it.
Comment:
Large scale
Comment:
Short Term
Comment:
The recent events in the UK monetary policy have strengthened the British Pound beyond most previous expectations. For example, the GBP/JPY currency exchange rate on Friday was located above the 150 mark.
However, by looking at the larger scale picture, it can be observed that the move could have been expected. The pair had recently bounced off the support of a dominant channel up pattern and begun its move higher, and it was set to reach above the 150 mark.
In regards to the future, the pair should still reach the resistance of the dominant channel. Afterwards a period of consolidation should begin.
The recent events in the UK monetary policy have strengthened the British Pound beyond most previous expectations. For example, the GBP/JPY currency exchange rate on Friday was located above the 150 mark.
However, by looking at the larger scale picture, it can be observed that the move could have been expected. The pair had recently bounced off the support of a dominant channel up pattern and begun its move higher, and it was set to reach above the 150 mark.
In regards to the future, the pair should still reach the resistance of the dominant channel. Afterwards a period of consolidation should begin.
