Patterns: GBP/JPY, AUD/JPY
|GBP/JPY 4H: Breakout occurs
The British Pound has surged by 222 pips or 1.68% against the Japanese Yen since June 26. The currency pair breached the upper boundary of a descending channel pattern during yesterday's trading session.
Given that a breakout had occurred, bullish traders could continue to pressure the exchange rate higher during the following trading sessions. The possible target for bulls would be at the 135.92 level.
However, a resistance cluster formed by the weekly resistance line and the monthly pivot point at 135.06 could provide resistance for the currency exchange rate within this week's trading sessions.
AUD/JPY 4H Chart: Buying signals
The Australian Dollar has surged by 2.66% against the Japanese Yen since June 20. The currency pair breached the 50– and 100– period simple moving averages during this period.
Technical indicators suggest buying signals on the 4-hour time frame. Therefore, bullish traders are likely to pressure the exchange rate higher during the following trading sessions.
However, a resistance cluster formed by the weekly R1 and the monthly pivot point at the 74.44 area could prevent bulls from driving the price higher in the shorter term.
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