GBP/JPY 1H Chart: Pair trades in wedge
For the last 1,5 years, the Pound has been stranded in a rising wedge against the Yen. The upper boundary of this long-term pattern was tested early in February when the Sterling reversed from the 156.60 mark. The pair has since depreciated in another wedge-like formation.
As apparent on the chart, the rate was reluctant to move below the monthly S2 last week; however, the strong bearish sentiment late on Friday pushed it down to the 23.60% Fibo retracement near 149.00.
Meanwhile, the pair has approached a short-term dashed trend-line. In case this line and the combined resistance of the monthly S1, the weekly PP and the 55- and 100-hour SMAs circa 151.50 are breached, a subsequent surge, possibly up to the 154.00, is likely to follow.
On the other hand, the failure to surpass 151.60 should send the pair for a further decline down to 148.00 where the monthly S2 and the weekly S1 are located.
As apparent on the chart, the rate was reluctant to move below the monthly S2 last week; however, the strong bearish sentiment late on Friday pushed it down to the 23.60% Fibo retracement near 149.00.
Meanwhile, the pair has approached a short-term dashed trend-line. In case this line and the combined resistance of the monthly S1, the weekly PP and the 55- and 100-hour SMAs circa 151.50 are breached, a subsequent surge, possibly up to the 154.00, is likely to follow.
On the other hand, the failure to surpass 151.60 should send the pair for a further decline down to 148.00 where the monthly S2 and the weekly S1 are located.