GBPJPY | Are we Seeing a New Breakout?
Hi, traders and TradingView community. The GBPJPY is on our radar today after a solid session from buyers yesterday.
Flash manufacturing and services PMI data came in better than expected and, combined with a mainly weaker yen, gave the GBP a nice boost. Buyers added 1.18% yesterday and broke above resistance, which has started to confirm a breakout of ascending triangle pattern. Breakouts from consolidation patterns can be seen as a good thing, as price has had plenty of time to build momentum.
The next thing we are looking for is further upside that can test or break the downtrend and resistance point (black box). If reached, we would also like to see the old resistance level become support for future seller tests.
164.20 could become resistance; much further above, 168.90 is also seen as possible resistance.
160.50 is seen as short-term support on the current upswing, and we would like to see 162 – 161.80 become support if tested.
If we see price move back into the previous consolidation pattern, this could be a worry. We would like to see new higher lows set up on or above the breakout point to continue to show that buyers hold momentum.