The end of 2021 is approaching and it is often an opportunity to summarise and make plans for next year. As I did this year, I will do a summary of winners and losers (against the USD) in January, while today I decided to look ahead and try to predict the GBP/JPY quotes for the coming weeks

  • inside bar on the weekly chart
  • triangle resistance overcome
  • Will the demand reach the level of 195.70 ?
GBP/JPY weekly – price moves in a formation close to a declining triangle

If we look from a further distance at the weekly chart of the pair British pound and yen, we can see that after reaching the all-time maximum at the level of 251.10 in July 2007, the pair formed on the top a Head and Shoulders formation.

In the period from mid-2011 to 2015, an upward correction continued, but the H&S formation appeared again and another wave of declines followed after the neckline was overcome.

The line connecting the “heads” of these formations marked the resistance of the downward triangle. Currently, the price has overcome this resistance and is heading north.

GBP/JPY – the price has overcome the triangle resistance and is heading towards 195.70

When we zoom in on the mentioned weekly chart, we can see that the price broke out of the inside bar formation in the past week while forming a bullish engulfing pattern and is above the triangle resistance. There is a high probability of the continuation of the increase to the nearest supply zone at 195.70. Bearing in mind that we are considering a weekly chart, it may take several weeks to reach the assumed target.

The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE .
More current analysis on the group : Trade with Dargo

Tuesday 28th of December 08:00 -09:00 GMT – live trading session here:

In our Facebook group, which you can join anytime: you will find 5 simple strategies on which my trading is based. There, every day  we post fresh analyses of currency pairs and commodities. You can also visit my channel where I post my trading ideas:





Leave us a comment!

Error, group does not exist! Check your syntax! (ID: 3)