Forex Trading: GBPJPY May Break out from Symmetrical Triangle at $145 Price Level

Forex Trading: GBPJPY May Break out from Symmetrical Triangle at $145 Price Level
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GBPJPY Price Analysis – April 16

The breakout of the price at the upper trend line will place the price at $140 – $150 while the breakout at the lower trend line of the triangle will decline the price to $143 price level.

GBP/JPY Market

Key levels:

Supply levels: $150, $152, $155
Demand levels: $148, $145, $143

 

GBPJPY Long-term trend: Bullish

GBPJPY is bullish on the long-term outlook. The bullish trend on GBPJPY started on January 4 and rallied up to the price level of $148 on March 01. The formation of the Doji star candle pattern reversed the price to $143 price level. On March 11, the bullish engulfing candle emerged as a bullish reversal signal candle; this returned the price to the previous high at $148. The Bulls lost the pressure and the price fell to the demand level at $145 where it started sideways movement; this has resulted in the formation of a symmetrical triangle.

GBPJPY Daily chart, April 16

GBPJPY is currently hovering over the 21 periods EMA and 50 periods EMA. The two EMAs remains flat horizontally placed on the chart showing no direction; it implies that sideways movement is ongoing. The Stochastic Oscillator period 14 is at 70 levels with the signal lines point up to indicate a buy signal. The breakout of the price at the upper trend line will place the price at $140 – $150 while the breakout at the lower trend line of the triangle will decline the price to $143 price level.

GBPJPY medium-term Trend: Ranging

GBPJPY is on the sideways movement on the medium-term outlook. GBPJPY has been on the sideways movement on the 4-hour chart. Selling and buying pressure is not that strong but rather decreasing within the symmetrical triangle. Currently, the price is rolling down towards the $145 demand level.

GBPJPY 4-hour chart, April 16

Meanwhile, the stochastic Oscillator period 14 is at 60 levels pointing down to indicate a sell.

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About AzeezMustaph

Azeez Mustapha is a technical analyst, has many years of trading experience in the stock exchange and the crypto markets. He has broad experience in Forex trading, coaching, and funds management