GBPJPY since the beginning of the year, after the flash crash during the Asian session on January 2/3 of this year, has been moving in the growth channel. Last week, Thursday and Friday, we witnessed attempts to break the channel’s support. The Friday’s candle is engulfed with the Thursday’s daily candle, creating Inside Bar formation of a 220p range.
On chart H4 we can see that quotations are moving in consolidation, the price is in the middle of the IB, and breaking out of the formation may determine the direction in which the quotations will follow in the next sessions. Considering that the Daily chart shows there is a downward divergence and quotes have broken twice the support of the channel, it seems more likely that the IB will be broken thru the bottom. The nearest demand zone starting at 142.50 may be a target for supply.
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