GBP/JPY Price Forecast: Decisively breaks out of Triangle pattern, upside target awaits

GBP/JPY has broken out of the top of a Right-Angle Triangle and moved some of the distance towards its target.
The pair will probably go higher, subject to confirmation.

Joaquin Monfort FXStreet

GBP/JPY has broken out of a Right-Angle Triangle pattern and rallied higher.

The pair completed a decisive move above the upper boundary of a Triangle pattern (see chart) and peaked on Wednesday at 198.44.

The first upside target for the pattern lies at 199.59 (blue shaded rectangle), the 61.8% Fibonacci extrapolation of the height of the triangle (at its widest point) higher.

GBP/JPY Daily Chart

The pair has pulled back since peaking but the odds favor it eventually rallying back up to the aforementioned target. A break above Wednesday’s 198.44 high would provide bullish confirmation.

The Relative Strength Index (RSI) momentum indicator is not yet in the overbought zone (above 70) suggesting the pair has room to go higher.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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