Daily Price Action
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GBPJPY Terminal Pattern Nears Completion

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

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Since the March 2 low, the GBPJPY has churned higher by more than 400 pips. However, two things are keeping me bearish here.

The first is the February 28 close below a trend line that extends from the 2016 low. I’ve discussed this breakdown several times in recent weeks including March 23 and again this past weekend.

The second is the 4-hour rising wedge pattern that began in early March. The upper boundary of the formation is the 2016 trend line I mentioned above.

When I highlighted this pattern on March 23, the GBPJPY was trading at 148.86, and the resistance area at the time came in at 150.40/75. On March 27 the pair reached a session high of 150.50 before immediately dropping 150 pips.

Now, I’m not insinuating that was the selling opportunity. Clearly, this consolidation that began in early March still has more to go.

It does, however, tell us that former trend line support from the 2016 low is still serving as resistance. With that in mind, two scenarios would pique my interest enough to consider a short entry.

The first would be a retest of the 150.75 area. There is enough confluence in the region to suggest that a retest would trigger a move lower and perhaps, a break below wedge support.

Speaking of a break below support, that’s the second scenario that would pique my interest. It’s going to take a 4-hour close below the level which currently resides near 149.00. Such a break would expose the 145.85 horizontal level followed by 144.00.

I told Daily Price Action members last week that this GBPJPY pattern is just about the only thing on my radar right now. Much of the currency market is either consolidating or approaching major inflection points, making entries unfavorable at the moment.

Moreover, if this GBPJPY pattern plays out the way I think it will, it could trigger another 1,000 pip decline over the next four to eight weeks, so it’s well worth the wait.

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GBPJPY 4-hour rising wedge

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20 comments
Don says

You are correct on this one Justin. The seasonal movement is Down towards 145 into April

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Emuobo says

Nice

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Mootion Skiy says

JB you’re genius. I am also thinking of great GBP fall to 130-140.

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Olivia+phiri says

Awesome👏✊👍

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Cheick says

Hi Sir, thank your updates, i already send you a comment; detailing my needs for funds, before getting started, so i’ve tried unsuccessfully so far, that’s why i wanna ask you, to kindly give me hints where to ask for a LOAN between $100-$1000, i’ll repay Very swiftly, i’m business trained and with your help succès is assured..so i’ll await your reply Nice Day FAITHFULLY YOURS cheick

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    Ade says

    Please be wise about trading forex with money loaned. Please be wise.

    Reply
    HIGHLANDER says

    Dear Cheick, my sincere advice to you is this “please do not trade forex with a borrowed money, trade only with a money that if lost you can forget it. Forex trading has some spirit behind it. Thanks.

    Reply
    Justin Bennett says

    I 100% agree with the comments above.

    Reply
    Darius says

    you do not have even 100 $ ? how you will pay it if you lose? if you are able to earn them, why not earn, and then invest 🙂 but sounds like you are not even winning on demo from the way you talk, so first win in demo 🙂

    Reply
    Pierre+Mifsud says

    My advise is that NEVER trade with other people’s money…..Trade only with real money once you have mastered skills and an aptitude of doing well.When you master the trade, then keep some money aside that you can effort only to lose

    Reply
    john says

    Cheick this is not a get rich quick process. Unless you happen to hit your trades just right. Just work at wins no matter how small. Hey I started with 700 bucks and am down to 160.I win some I lose some. But I am not discouraged, small wins add up. Trading the micro lots. Everyone is right, NEVER use borrowed money. That’s Crazy!

    Reply
Sam says

Hi Mr Spot On

Thank you!

Waiting patiently for that Bearish signals. This pair when it move it move aggressively.

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    remalo says

    Do you expect a great move down?

    Reply
      Sohailkhan says

      Hay

      Reply
andron says

Do you base your trades off key level, trend line and priceaction?

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remalo says

Hello, I am beginner in Forex. I take only short trades and I am learning only on GBP/JPY so thanks for your analysis this pair. Thank you for you web pages.

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Eric says

Before the drop it might go to 151.6

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HIGHLANDER says

Thanks Mr Justin for this analysis. You are doing a great job, God will surely reward your efforts in helping others without charges.
Thanks once more, remain blessed.

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Muhammad yaseen says

Excellent confluences gather

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sofiane says

Thank you for your analyse , as i can see , we have a Wedge Formed , so we will enter selling after Breakout (Re-test) , What do you think?

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