GBP/JPY 4H Chart: Breaking of Patterns
After the recent development and breaking of various minor channel patterns the Pound has revealed a new direction and a new long term pattern against the Japanese Yen.
In general, the most junior channel up patter was broken at the end of the last week. Meanwhile, a dominant descending channel was broken previously. The possible breaks could have been spotted beforehand. However, due to the fundamental changes in the both currency pairs, Dukascopy absolved from reviewing this currency pair.
Although, the pair has revealed a dominant support line, which is set to guide the pair to the levels above the 150.00 mark.
In general, the most junior channel up patter was broken at the end of the last week. Meanwhile, a dominant descending channel was broken previously. The possible breaks could have been spotted beforehand. However, due to the fundamental changes in the both currency pairs, Dukascopy absolved from reviewing this currency pair.
Although, the pair has revealed a dominant support line, which is set to guide the pair to the levels above the 150.00 mark.
Comment:
The Pound has made another rather unpredictable move against the Japanese Yen. However, this fundamental event dominated currency exchange rate can still be charted.
On a larger scale the pair has broken a channel up pattern and revealed a channel down pattern. The whole move has occurred in the borders of an even larger scale ascending channel pattern.
Meanwhile, the main focus is on the four hour chart, where a junior descending pattern is guiding the rate down to the combined support of the weekly and monthly S1s, which are likely o be reached soon.
The Pound has made another rather unpredictable move against the Japanese Yen. However, this fundamental event dominated currency exchange rate can still be charted.
On a larger scale the pair has broken a channel up pattern and revealed a channel down pattern. The whole move has occurred in the borders of an even larger scale ascending channel pattern.
Meanwhile, the main focus is on the four hour chart, where a junior descending pattern is guiding the rate down to the combined support of the weekly and monthly S1s, which are likely o be reached soon.
The Pound continues to creep higher against the Japanese Yen by finding constant support in the lower trend line of the dominant channel up pattern.
However, there seems to be no active junior or medium term pattern. Instead it can be observed that there is a resistance line, which is almost parallel to the mentioned dominant support.
Regarding the short term outlook, it can be expected that the currency exchange rate will surge,. The rate should face the resistance of the weekly PP, if it gets pushed higher by the channel’s support line.