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14 Mar 2013
Forex: GBP/JPY, breakout above 145.00 could really trip stops - 2ndSkies
Faced with area of supply at 143.70/80, the GBP/JPY managed to enjoy a brief drive through it before consolidating quietly below 143.50 along present Asian session. On the downside, 142.60/80 demand has contained falls for now.
As Chirs Capre, founder at 2ndSkies, notes: "The GBPJPY has been consolidating between 142 and 144 for the last three days, forming an ioi pattern, which consists of an inside bar, then outside bar, followed by another inside bar. This usually leads to a counter-trend breakout play, however a breakout above 145 could really trip some stops."
He adds: "I’ll be watching a potential breakout pullback setup above 145, while a break below the outside bar lows at 142 would likely lead to further losses to 141.42 and 140.60, so watch for price action clues at the short term range levels for direction."
As Chirs Capre, founder at 2ndSkies, notes: "The GBPJPY has been consolidating between 142 and 144 for the last three days, forming an ioi pattern, which consists of an inside bar, then outside bar, followed by another inside bar. This usually leads to a counter-trend breakout play, however a breakout above 145 could really trip some stops."
He adds: "I’ll be watching a potential breakout pullback setup above 145, while a break below the outside bar lows at 142 would likely lead to further losses to 141.42 and 140.60, so watch for price action clues at the short term range levels for direction."