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GBP/JPY: Ascending Triangle Breakout up to 217.00?
by S. Wade Hansen The GBP/JPY is back up against resistance just below 214.00 again, and this time, it may just have the momentum to break up and above this level. You can see on the chart below that 214.00 has been serving as resistance on this currency pair since January. And while an attempt to break through this level in June didn't pan out, this attempt might just work. [IMG]http://www.pfxglobal.com/images/stories/gj_breakout1.png[/IMG] This attempt looks promising because of the ascending triangle formation (a bullish price pattern) that is forming on the GBP/JPY hourly chart. You can see that the GBP/JPY may break right up and through 214.00, or that it may pull back just a little bit before getting a support bounce off of the up-trending support level and then make a move on breaking through 214.00. [IMG]http://www.pfxglobal.com/images/stories/gj_breakout2.png[/IMG] [IMG]http://www.pfxglobal.com/images/stories/gj_breakout3.png[/IMG] All in all, it looks like the GBP/JPY is going to continue moving in the up-trending channel that it has been in since March. And if it can break up above resistance at 214.00, the next significant level of resistance is up at 217.00---the top of the up-trending channel. Let me know what you think about the GBP/JPY's chances here. I recently received some negative feedback saying I was way off base believing that the GBP/JPY was going to make it to 215.00, but I still think it will. However, I know there are those out there who still disagree with me and my bearish stance on the Japanese yen (JPY) so I'd love to hear the feedback on both sides of the debate.
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