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GBP/JPY - Bullish Engulfing Pattern off Support

The GBP/JPY has been sideways since Nov. 2013. Before that, the pair was bullish since 2012. So the market is sideways, with a slight bullish bias.


(gbpjpy Daily chart)

The 5/22 session ended with a bullish signal - a bullish engulfing candle that bounced off support at 169.78. As GBP/JPY makes a new high on the week just above 171.60, it opens up the 173.13-173.58 resistance area. Above that, 174.83 is the 2014-high.

The oscillators also signal a reversal from a bearish cycle to a bullish one as the stochastic turns up from below 20, and the RSI bounces off 40 on the daily chart.