GBP/JPY in a Bullish Continuation Breakout; 172.74 in Sight

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GBP/JPY in a Bullish Continuation Breakout; 172.74 in Sight

Bullish Breakout:
The GBP/JPY is start the 5/27 Asian session with a bullish continuation breakout.

GBP/JPY 1H chart
gbpjpy 0527 1h

The first bullish breakout you can see in the 1H chart happened last week, with a break above the 171 area. The 5/27 begins with a breakout above 171.85 which was last week’s high.

GBP/JPY 4H chart
gbpjpy 4h chart 5/27

The 4H chart shows that the breakout also pushes GBP/JPY above a falling trendline from the May-high of 173.45.

The current breakout first opens up the 172.74 resistance area before the 173.45 May high

Bullish vs. Bearish Scenario:
If upon a subsequent pullback, a dip breaks below 171.50, which is the central pivot of the broken consolidation, then the bullish outlook remains in play.

A break below 171.50 however reflects a market that is showing respect to the previous head and shoulders pattern. In this bearish scenario, the 170.00 handle comes into play.

To contact the reporter of this story, email Fan Yang at fan@forexminute.com
Forexminute.com

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.