Daily Price Action
Shares

GBPJPY Wedge to Dictate Future Direction

Shares

Important: I use New York close charts. Click Here to Use My Preferred Broker

Yesterday we looked at how the NZDJPY could reverse lower with a close below ascending channel support. At the time the pair was trading at 80.71. It seems sellers are now holding prices below former support on a 4-hour closing basis.

I also have reason to believe that the EURJPY has topped out. I mentioned this last week and have also written several posts on the topic in the member’s area.

Is the GBPJPY next?

One thing I’ve noticed over the years is that the yen pairs tend to exhibit domino theory. In other words, a breakout on one or two yen pairs can sometimes foreshadow what’s about to happen with others. That’s particularly true at turning points.

The USDJPY was first. We discussed a wedge pattern last week that triggered a favorable short opportunity which delivered more than 100 pips in just seven hours.

So far it seems the NZDJPY is second. As long as that 80.50/60 area holds as resistance, sellers have a fighting chance at regaining control.

So how about the GBPJPY?

Since the August 2017 low, the pair has carved a wedge pattern. The formation has a slight upward tilt and has three touches on both support and resistance.

It was wedge support that helped trigger last week’s bounce at 150.40. However, if the other yen pairs are any indication, I would suspect that sellers will force yet another retest of support momentarily.

With patterns like this, it’s usually best to let the market make the first move. Until the GBPJPY closes the day (New York 5 pm EST) below support or above resistance, we don’t have enough information to form a directional bias.

A daily close below wedge support would likely encounter buying pressure at 149.35 followed by 147.00 and 144.00. Alternatively, a close above wedge resistance would likely find selling pressure at the 156.00 handle.

Want to see how we’re trading this? Click Here to Join Justin and Save 70%

GBPJPY wedge pattern on the daily chart

Leave a Comment:

12 comments
Noorzai says

Great analysis

Reply
    Justin Bennett says

    Cheers!

    Reply
Yazib says

Tq Mr Justin, how to know the breakout is valid..body breakout or tail breakout…

Reply
    Justin Bennett says

    From the post…

    “Until the GBPJPY closes the day (New York 5 pm EST) below support or above resistance, we don’t have enough information to form a directional bias.”

    Reply
Don says

Great Analysis as usual Justin

Reply
Katerina says

On the weekly time frame there is a wedge as well, from october 2017. I will send you the screenshot of my chart over email. I wonder what you think of it. Thank you

Reply
    Justin Bennett says

    Yes, I’m aware. Thanks.

    Reply
Sumantra kumar halder says

I’m interested GBP/USD

Reply
Gerhard says

Hey Guys, I’m long since 150.87, which was for me the price action respecting the wedge patern. My Tp is at the upper wedge.. Im in profit now… and before this post 🙂 do I move my SL to zero, trail it, or take what I have and wait for a re- entry

Just a general question

Thanks for allowing me to be part of this awesome site and channel!

Reply
Nkosilathi hadebe says

Thanks so much, don’t we have a similar pattern on audnzd and gbpchf?

Reply
Albert says

The intermediate Evening Doji Star is still the trend driver. 😊

Reply
    Ade says

    You don’t know for certain. Doji is uncertain candle.

    Reply
Add Your Reply