GBPJPY Weekly Chart Bull Flag Near Completion

Articles From: Tradable Patterns
Website: Tradable Patterns

By:

CFA, Founder

Tradable Patterns

The GBPJPY is trying to form its 6th straight green daily candle, but could begin consolidating today as it bumps up against ascending wedge resistance (on the daily chart).  Significantly, the GBPJPY has decisively broken a downtrend resistance line (on the weekly chart) connecting the May and September highs, and is suddenly back to near the 2021 high formed in May.   The GBPJPY is arguably completing a broader Bull Flag consolidation (on the weekly chart) that began May, with odds high for a reclaiming of the March and May 2016 highs sometime before month end.  The weekly and daily RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains.   I am looking to go long in the green zone (of the daily chart), targeting the red zone for Wednesday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).

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