The Dragon or the Beast -the GBPJPY currency pair is one of the best moving pairs in Forex market. Strong correlation to Equities such as Nikkei, Dax and S&P500 is because the Japanese can get cheap credit, so they invest overseas heavily. When its risky, they bring the money back creating demand for Yenand vice versa, when the Equities are flying high, they pump their money overseas, which means they sell Yen and buy foreign currency.
Technically GBPJPY is showing a bullish pennant and above 161.60 we might see the dragon flying high. Intraday targets for a bullish breakout are 161.98 (H4 camarilla daily pivot) and possibly 162.78 (H5 camarilla daily pivot). Weekly targets can be even higher – 163.45 and if we see a weekly close above it 165.84 might be in play too. We can see that from a strict PA perspective. Adding the height of the flagpole to the pennant breakout point creates a confluence with Camarilla Weekly pivots.
However for this setup and scenario Equities must be bullish were Yen is sold heavily. So ,watch out for the potential pennant breakout and intraday targets first.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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