GBP/JPY – Outside Bar Stops the Bullish Continuation Breakout

GBP/JPY - Outside Bar Stops the Bullish Continuation Breakout

The GBP/JPY broke above a triangle resistance last week and therefore signaled bullish continuation. Let’s follow up with this breakout.


The daily chart shows that the bullish breakout is from a bearish correction structure, which turned out to be basically a descending triangle. However ,price failed to clear the 185 resistance before a heavy bearish outside bar closed out last Friday.

This price action gives us two ideas.
1) We should be looking for a pullback, but if the pullback holds above the 179-180 area, there is still upside risk towards the 185 resistance. A break below 179 would put pressure back on the 174.88-175 low.
2) If this outside bar is reversed, and price crosses above 185, we can be sure that the market will have lost some bears and therefore we should have more confidence of the bullish outlook to test the 189.71 high from December 2014.

Previous Post by Author: Key Fundamental Factors this Week (5/4 – 5/8)

Previous articleBitcoin News Mash-Up: Coinbase Blog; Film Production; and More
Next articleAUD/USD Trying to Stay Bullish Above 0.78
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