By PFXGlobal, Yesterday at 7:32pm, Topic Technical AnalysisThe GBP/JPY is Coiling---Watch for the Breakout
by S. Wade Hansen
The GBP/JPY is coiling, building more and more tension. It hasn't broken out of its consolidation range yet, but when it does, it is bound to take off with a bang.
http://www.pfxglobal.com/images/Wade/gbp_coil.png
For the past month, the GBP/JPY has been channeling between 230.00 and 235.00. The longer it stays in this range, the more likely a large and rapid breakout becomes. While the breakout may not come tomorrow, there are a few things you can do to prepare.
You could set alerts with your dealer to be notified if the GBP/JPY breaks above 236.00 or below 228.00 so you could jump in and take advantage of the breakout. Of course, if you wanted to be more aggressive, you could set entry orders at both of those levels and get in right from the start.
Personally, after seeing the pair try to drop below 225.00 twice in August and failing, I think the breakout is going to be to the upside as the carry trade resumes...but that's just my two cents.
__________________
Analysis by Profiting With Forex (PFX)
by S. Wade Hansen
The GBP/JPY is coiling, building more and more tension. It hasn't broken out of its consolidation range yet, but when it does, it is bound to take off with a bang.
http://www.pfxglobal.com/images/Wade/gbp_coil.png
For the past month, the GBP/JPY has been channeling between 230.00 and 235.00. The longer it stays in this range, the more likely a large and rapid breakout becomes. While the breakout may not come tomorrow, there are a few things you can do to prepare.
You could set alerts with your dealer to be notified if the GBP/JPY breaks above 236.00 or below 228.00 so you could jump in and take advantage of the breakout. Of course, if you wanted to be more aggressive, you could set entry orders at both of those levels and get in right from the start.
Personally, after seeing the pair try to drop below 225.00 twice in August and failing, I think the breakout is going to be to the upside as the carry trade resumes...but that's just my two cents.
__________________
Analysis by Profiting With Forex (PFX)