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GBP/JPY Trading in a mini-Triangle

GBP/JPY has been consolidating, and since 9/23, it has been in a mini-triangle as seen in the 1H chart. 

(GBP/JPY 1H Chart 9/29)

The 200-, 100-, and 50-hour simple moving averages are converging, reflecting the tight consolidation of the pair since a bullish trend. Now, a break above 178.25 would open up a bullish continuation outlook, first with the 178.73 high in sight. Above that, the September, and 2014 high at 180.70 would be in sight. 

This bullish outlook would have a stronger case if 
1) the 1H RSI pops up above 70.
2) On a pullback, price holds above 178, and the 1H RSI holds above 40. This would establish the recent consolidation as a base for further bullish outlook.

The 4H chart shows that the market is indeed bullish based on the moving averages, and the fact that the 4H RSI held above 40 after tagging above 80, showing maintenance of the strong prevailing bullish momentum. 

If price falls below the triangle, the 176.63 level will be the first support. The next key support area will be in the 174.65-175.00 area. This contains, a previous resistance pivot, 50% retracement, and is just below the 100-period SMA in teh 4H chart. 

Below 174.60, the next and probably last line of defense for the bullish outlook would in the 173.69-174.00 area, which includes a previous resistance area, the 200-period SMA in the 4H chart, and the 61.8% fibonacci retracement level.A break below 173.60 could shift GBP/JPY from bullish to sideways if not bearish.

(GBP/JPY 4H Chart 9/29)