Bullish Flag on GBP/JPY

GBP/JPY 1-hour

GBP/JPY 1-hour

There goes GBP/JPY! After days of consolidation, we’re finally seeing volatility on the pair pick up. It rallied more than a hundred pips, going beyond the 174.00 handle┬áduring yesterday’s New York trading.

The pound’s rally has stalled for now. However, don’t get too excited about a reversal just yet. GBP/JPY actually looks like a bullish flag on the hourly time frame. A break above yesterday’s high above 174.20 could mean that the pair is headed to test July’s highs at 175.36.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com.