WillRakowski

GBPJPY Head and Shoulders Trend Reversal?

Long
FX:GBPJPY   British Pound / Japanese Yen
-Since my last analysis of GBPJPY , the price has rejected the 130.581 level, which was noted as a possible outcome.

- A nice inverse head and shoulders pattern has emerged on this pair.

- The distance between peak of inverted head and right shoulder is around 310 points, therefore from the breakout of the neckline early this morning, we can expect the price to push a similar distance to the upside.

- This movement would also bring the price to the previous resistance of 135.268.

- RSI on the 4 hour time frame stands at 69.53, so, in the short term, we could also see a retracement to, and retest of the neckline before continuing an upward trend.

I hope this is an helpful analysis; please share your thoughts and opinions!
Comment: It took a few days, and two retests of the neckline (as was always a possibility), but the past two days of trading has seen the expected jump to (and now beyond) the 135.268 level. Perhaps we will see a retracement to this level before the price continues upwards or potentially reverses.