GBPJPY is on the move this week after months of consolidating between 149.00 and 158.00.
The target for this breakout is substantial, but current conditions make entering here tricky.
So in today’s video, I discuss the details of this week’s GBPJPY breakout, including two scenarios I’m eyeing.
GBPJPY has broken out of a six-month range. The pair cleared 158.00 yesterday, which flips that area to support.
As long as buyers can defend 158.00 going forward, GBPJPY looks set to move higher toward 164.00 in the coming weeks.
However, it’s going to depend on how the market retests resistance turned support.
A rounded retest would be ideal, but it doesn’t look like that’s in the cards given today’s aggressive pullback.
That leaves me watching for one of two things from GBPJPY.
The first would be bullish price action from 158.00 to suggest that buyers intend to push prices higher. In which case, I’ll entertain a long position.
The second scenario would be an aggressive drop to 158.00, followed by a daily close back below it to confirm a false break.
Either way, this breakout from GBPJPY should offer an opportunity in the coming days.
Of course, there’s always the chance we don’t get a retest of 158.00. But I’m not going to chase, especially considering how stretched the market is right now.
Key resistance for GBPJPY comes in at 164.00, which has been a key area since 2009.