Choppy Trading In GBPJPY – Can We Expect a Breakout Today?
Arslan Butt • 2 min read
What’s up, traders. The cross-currency pairs are stuck in ranges due to lack of fundamentals. But now, the wait is over. We have speeches from central bankers including the Bank of Japan as well as Bank of England. The remarks from them can give direction to Guppy.
BOJ Gov Kuroda Speaks – Today at 6:35 (GMT), Kuroda is due to speak at the National Securities Industry Convention in Tokyo. Being a head of the central bank, his speech can cause volatility in the Japanese currency pairs.
BOE Gov Carney Speaks – Likewise, Mark Carney is scheduled to deliver opening remarks at the Bank of England's conference celebrating 20 years of independence, in London. He is not expected to address monetary policy issues, yet we need to stay attentive during his speech at 8:15 (GMT).
GBPJPY – Symmetric Triangle Pattern
The technical outlook has not changed much. Remember we discussed the descending triangle pattern in the 4 – hour chart? It's still in play and keeping the pair in tight ranges of $150.150 – $151.500 and the broader range is $150.150 to $152.850.
GBPJPY – 4 – Hour Chart – Symmetric Triangle Pattern
For your information, the symmetric triangle can break any side. It can be bearish and it can be bullish. That's the reason I'm staying out of this pair for a couple of days. On the breakage of $151.150, the market can tick down towards $148.50. Whereas, the bullish breakout can result in further buy until $152.850. The leading indicators RSI and Stochastic are also tossing between overbought and oversold zones.
On the daily chart, we can see a Doji candle which is signifying the neutral sentiment of investors about this specific currency pair. Do you know about candlesticks? If no, I would highly recommend to check out FX Leaders Candlestick Trading Strategy to stay one step ahead of others.
GBPJPY – Trading Plan
I'm sticking with the same plan of staying in sell below $151.350 in order to target $150.20 and will prefer to enter a buying at $150.150 with a small stop loss of $149.850. Good luck.