Refer a friend

GBPJPY has been forming a large head and shoulders pattern for some time now but has yet to complete the pattern with the break of the neckline.

So what’s next for GBPJPY?

Watch the video to learn more…

Daily Chart

forex chart of the day gbpjpy daily chart

The daily chart on GBPJPY highlights the large scale head and shoulders pattern forming on the chart. The price however, has failed to complete the pattern as we have not seen a break and close below the neckline lows. This doesn’t mean it is not going to happen, it’s just we haven’t seen it yet. 

Technically despite the price continuing to find support at the neckline of the pattern the highs are getting lower. This could be a sign that the buyers are losing momentum and that a break lower is more likely. As well the price has revisited this level over 6 times in a short space of time which can make a support or resistance level weaker. 

If the price breaks and closes below this zone we could anticipate a further move lower, however, currently the price is forming bullish rejection candles. In the short term we could see the market rally back towards the 151.50 resistance level before seeing the breakout lower. 

Trading Time Frame

forex chart of the day gbpjpy 4hr

Looking to the 4hr time frame the price is showing the potential short term reversal in more detail. The recent low that formed shows a lack of momentum. If the price breaks and forms a new higher highs we can look for short term trading opportunities back to the minor resistance level of 151.50. 

Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.

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