GBP/JPY: Relief Rally

Published 01/16/2017, 05:40 PM
Updated 07/09/2023, 06:32 AM

GBP/JPY has been bearish since the 15th of December 2016 when it completed the C point of a bullish 5-0 pattern (illustrated below).

I initially predicted this move almost one month ago on TradingView.

GBP/JPY 4H Chart


Since discovering the pattern during December 2016 price has now completed the D point of the bullish 5-0 at 136.500 which is in a crucial support zone. This price level is potentially a new low in the market (as shown below), thus providing the opportunity to buy low.

GBP/JPY Daily Chart


To validate the change in market direction I'm expecting price to increase following tomorrow\'s speech on Brexit with Prime Minister Theresa May (17th of January 2017).

There is a bearish consensus around Theresa May's speech, those looking to punish Sterling further could be disappointed.

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