GBP/JPY approaching the upside barrier

Ian Coleman FXStreet

A jittery start to the trading week with most European bourses moving to the downside, bar the FTSE. Yen crosses are still pushing to the upside despite the risk off scenario.

GBP/JPY, and we have a sold upside barrier at 162.12-162.18

Will we correct lower in the next few hours to form an intraday bearish Butterfly, cypher formation?

GBP/JPY 1-hour

Looking to the weekly chart and my long-term bias is to sell into to rallies with the downside potential towards 134.55-134.11, completing a Crab formation over the next few months.

This setup, leaving a 50% balance on after the initial drop to 160.12, offers a great risk/reward.

Will the second tier Japanese economic releases overnight give the setup a boost?

Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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