GBP/JPY has been range trending for sometime now and it has just retested the upper line of the pattern. Will it hold or break off it?
Earlier today, the Bank of England announced that it had maintained rates at 0.50% and has made no additional asset purchases. The announcement may be a reflection of the thriving economic growth following the Olympics games, which were held in the country. As a result, the pound has registered a positive growth across the board.
As earlier mentioned, technical analysis on the GBP/JPY reveals the pair has just retested a significant resistance level. If the pair manages to clearly break out of this pattern, it may encounter resistance at 127.00 before moving higher. On the other hand, if the pair bounces off this level, it may encounter support at 124.50 before moving to the lower line of the pattern.
GThe best case scenario would be to wait for the pair to either clearly break out or bounce off its present level before placing a trade. Otherwise, you may be caught on the wrong side of the trade if you decide to enter now.
DISCLOSURE & DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER.