GBP/JPY Eyes 137 as Asymmetric Triangle Breakout - Forex News by FX Leaders

GBP/JPY Eyes 137 as Asymmetric Triangle Breakout

Posted Thursday, June 13, 2019 by
Arslan Butt • 1 min read

The safe haven currency Japanese Yen remains in power amid lingering trade war concerns. That’s unsurprising given uncertain global risk appetite, triggered over long-running US-China trade dispute and now bolstered by significant protests in Hong Kong.

The British Pound turned bearish from its best levels of the current week after the opposition Labour party disappointed in a bid to set in motion a political process that would eventually stop a ‘no deal’ Brexit from taking place on October 31.

GBP/JPY – Asymmetric Triangle Gets Violated

Besides fundamentals, the technical side is also supporting the bearish trend in GBP/JPY. On the 4-hour chart below, GBP/JPY traded in an asymmetric triangle pattern which was supporting the Guppy over 137.650. However, the level failed to survive against the safe haven demand.

Right now, GBP/JPY is likely to gain support above 137, and the violation of this could extend the bearish trend until 136.570. On the upper side, GBP/JPY may face resistance below the bullish trendline level of 137.850.

Support Resistance
137.7 138.43
137.28 138.75
136.55 139.48
Key Trading Level: 138.01

GBP/JPY – Sell Signal

Fellas, we are holding our sell position below 137.28 with a stop loss above 137.68 and take profit of 136.98.

Good luck and stay tuned for more updates!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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