Cross-rate signals: GBP/JPY returns to the uptrend

The GBP/JPY cross-rate, after yesterday’s wave of risk aversion, has returned to an established uptrend that has been traced since early March. At the same time, the update of the minimum at 148.30 did not give a clear signal to the trend reversal. So, the main support – 148.00 stood.

To maintain the uptrend in March, the GBP/JPY pair needs to gain a foothold above the 149.00-148.70 zone, which on the H4 timeframe will make it possible to form an “inverted head and shoulders” figure, which also corresponds to the five-wave model of the movement.

Fig. GBP/JPY chart H4.

Also, this model indicates that the market is not ready for the rapid growth of the pair without correction. At the same time, the main support is located at the levels: 149.00 and 148.70. The signal for purchases will be a moderate correction and breakthrough of the level of the “neck” 149.50-70. The targets are: 150.00 and 150.40, but also it is worth remembering the recovery of the uptrend, which can significantly prolong the growth of GBP/JPY.

Fig. GBP/JPY. The current price is 149.50.

Hanzenko Anton