15 Nov 2013
GBP/JPY, where to after triangle breakout?
FXstreet.com (Barcelona) - GBP/JPY upside resolution away from a compressing triangle, which has been maturing since mid September, has led to an explosive clean breakout of 159.00 first and 160.00 later, suggesting further gains ahead.
GBP leads, Yen lags
The combination of broad-based Yen weakness and a reinforced Pound on a more hawkish BoE produced the perfect bullish storm this week, with the exchanging rate producing a 'legitimate' breakout of its old triangle pattern to now target more ambitious targets, with all eyes now on the 162.75 weekly resistance, level aligning with June/July 2009 double top.
Expect shallow retracements in GBP/JPY
The market is currently on a 'buying dips' mode in all Yen crosses, making especially attractive the idea of reinstating longs in GBP/JPY as absence of liquidity to the upside may lead to further price extension. The 30m EMA has been guiding prices higher quite accurately since the take-off on Nov 13, hinting at pullbacks to remain shallow.
GBP leads, Yen lags
The combination of broad-based Yen weakness and a reinforced Pound on a more hawkish BoE produced the perfect bullish storm this week, with the exchanging rate producing a 'legitimate' breakout of its old triangle pattern to now target more ambitious targets, with all eyes now on the 162.75 weekly resistance, level aligning with June/July 2009 double top.
Expect shallow retracements in GBP/JPY
The market is currently on a 'buying dips' mode in all Yen crosses, making especially attractive the idea of reinstating longs in GBP/JPY as absence of liquidity to the upside may lead to further price extension. The 30m EMA has been guiding prices higher quite accurately since the take-off on Nov 13, hinting at pullbacks to remain shallow.