The breakthrough on GBPJPY
The last two days have brought a significant breakthrough in GBPJPY pair. At the end of last week and beginning of actual, GBPJPY reached the downward trend line, which was further enhanced by the resistance level at 140.50. The appearance of correction in this place was very likely. However, after a single bearish candle and test of the closest support level at 138.50 GBPJPY returned to growth without worrying about the fact that growth without correction lasts for 3 weeks.
The highest level since June 2016
GBPJPY found today at the highest level since June 2016. The upward movement is heading at this point in the direction of another resistance, which is at the level of 147.50. The test of this level is now very likely, but its easily broken without correction will be a big challenge for the demand side.
A clear trend change
The November increases in the GBPJPY changed from initial correction in to new trend. The trend change we can confirm in several ways:
- Was broken downtrend line
- Price was at the highest level since June 2016
- You can specify initial sequence of highs and lows
- On the chart below for interval H4 I pointed out in red a new growth trend line