Daily Price Action
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GBPJPY Wedge to Offer 500-Pip Opportunity

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

GBPJPY has been in consolidation mode since climbing above 143.80 on February 19th.

It wasn’t the most apparent level before, but that has changed.

The 143.80 area is now a critical support level. It’s also one that is single-handedly propping up the 2019 rally.

But there is another key level in play here.

Following the year-to-date high at 148.87, the GBPJPY has carved a short-term trend line resistance.

The pair retested this level this past Thursday.

And when you combine trend line resistance and horizontal support at 143.80, you get a wedge pattern that could trigger a breakout in the coming weeks.

The 500-pip height of the wedge gives us an idea of the breakout potential.

It suggests that a daily close below 143.80 could target the 139.00 handle.

The “daily close” refers to the New York 5 pm EST close.

Go here to get access to the same charts I use for trading price action.

You can see how this area served as a pivot in January.

On the other hand, a close above wedge resistance could extend the current rally toward the 150.40 region.

However, there is also a trend line that extends from the September 21, 2018 high that would come into play if the pair does break higher.

That level comes in near 148.50.

For now, though, this is a waiting game.

I’m not interested in buying or selling GBPJPY at the moment given the tight trading range of late.

But the terminal nature of this pattern tells us that a breakout is imminent, so I won’t need to wait much longer.

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GBPJPY wedge pattern on the daily time frame

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16 comments
Justin Bennett says

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These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.

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idogei emmanuel says

waiting for it. thanks justin

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    Justin Bennett says

    You’re welcome.

    Reply
Dollargreen says

The upward movement may likely have it for GBPJPY to complete the Wave 5. The trigger will be your EMA direction that crosses the wedge pattern. Just my little thought.

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    Justin Bennett says

    The EMAs crossing over means nothing to me in terms of a signal. That isn’t how I use them.

    Reply
Rasyidplb says

Good analyze..helpfull thanks master✌

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OGBORO preciouslife says

Thanks man

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    Justin Bennett says

    You’re welcome.

    Reply
Adebayo saheed says

Thanks man

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Peter promise says

Thanks Justin

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Samuel says

Thank you very much sir for this insight.

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Paul Acholonu says

for now we are in NEPA darkness until our master clarifies how to enter the trade for up or down movement

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POLA P says

thanks ntate

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SP Jagatheeswaran says

Hi Mr. Justin,
Last day bar (03052019) closed above wedge resistance level. will it extend the current rally toward the 150.40? so what is our next move?

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