But which way?
A breakout has been a long time coming in the GBPJPY pair, with the consolidation having started many months ago.
Withnow closing in, we may not have to wait much longer. While support has been found until now around 148.50, the lower part of the , the 200/233-day band could represent the first major breakthrough that precedes a break of that long-term level.
Obviously, there’s no guarantee that a breakout will come to the downside, although ais arguably a setup.
But even if a break lower doesn’t come, the 200/233-dayband may provide sufficient support to hasten the breakout to the upside, through the descending and 55/89-day band.
What’s interesting at the moment is that the pair has run into resistance today around the 200/233-periodon the 4-hour chart, which coincides with the 61.8 fib of the recent highs to lows. A rotation lower from here could suggest we’re going to see a decent run at that , mentioned earlier.
Either way, we may not have to wait much longer for the breakout to occur. And when it does, given how long it’s taken, it could be a strong signal either way.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.