A bullish 121 trend continuation pattern on GBP/JPY looks promising and can soon be entered, if price remains bullish.
GBP/JPY seems to prepare itself for a larger move to the upside and should also generate a longer term overall bullish trend. If you look at my analysis from last week concerning GBP/JPY where I forecast a large move to the upside coming at the end of July and beginning of August this year, due to the similarity in formation of price action, RSI and the MACD as in Decembre, 2001, this bullish 121 trend continuation pattern seems to support that theory.
We will still need to be patient before entering a long trade, I would recommend an entry with a close above 148.00 to be on the safe side. Also, there is still a lot of news i.e. fundamentals that need to be processed, chief among which will be Brexit topics. But regardless of news, technically I see more bullish than bearish momentum for the next few years even, but as always we will have to wait and see how things unfold.
Lastly, a look at the RSI (settings 66.66 and 33.33) you will notice that the RSI is holding well above the 40 level as well as having formed a double bottom which of course suggests bullish momentum building up here, too.
Trade long 1 (RvR ratio 2:1) Entry: Close above 148.00 S/L: 143.70 T/P 1: 156.61
Trade long 2 (RvR ratio 2:1) Entry: Close above 156.61 S/L: 153.37 T/P 2: 163.09 As always, scale out your profits and adjust stop/loss to suit your personal risk management profile.