Forex Chart Of The Day: GBPJPY Breakout Pending

The price of GBPJPY has been consolidating for the past month. The GBP strengthened today after a new Prime Minister was announced. Could this see the price break out of the consolidation pattern?

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GBPJPY Analysis

The UK announced a new Prime Minister today in Lizz Truss. The GBP strengthened after the announcement which could continue. The new Prime Minister will be confronted by a heap of problems and will have to tackle the ongoing energy crises as well as recession fears in the UK. The strength meter this week shows us the GBP is the weakest currency but in a reversal zone. This can often see a currency gain strength against weakening currencies. In this case that could be the JPY, the JPY has been weakening again and could continue further. 

Looking at the daily chart we can see that the price is in a consolidative pattern which is reflected by the shape of the monthly volume profile. The price is currently being supported by the 160.70 lows. If the price was to then break above the monthly value area highs at 162.70 we could look for buyers to search for higher prices with previous highs being 166.34. A break below 160.00 and 159.40 would invite sellers into the market and the price could trade to the 156.35 lows.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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