Dmitriy Chernovolov, Technical Analyst who has been actively following the FX markets for the last 11 years. He uses a systematic trend following approach combined with a proven money management system. Dima prefers to combine multiple technical analysis tools (e.g. Fibonacci retracements, trendlines, indicator divergences, Japanese candlesticks, Elliott Waves as well as horizontal support and resistance levels on different time-frame charts) to identify high probability synergetic trade setups with a high reward/risk ratio.

GBP/JPY: buy target – 189.600

By: Dima Chernovolov

  • GBP/JPY broke resistance level 184.70
  • Next buy target – 189.600

GBP/JPY has been rising sharply in the last few weeks – following the earlier breakout of the round resistance level 180.00 (which was set as the buy target in our previous forecast for this currency pair). The breakout of this resistance level greatly accelerated the previous minor impulse wave (i) – which then broke the daily Triangle from last October. This impulse wave then reversed down from the strong resistance level 184.70 – starting the next minor correction (ii) which stopped at the upper trendline of the aforementioned, recently broken Triangle. The subsequent impulse wave (iii) form this trendline broke the resistance level 184.70.

With the daily Momentum recently reaching new yearly highs, GBP/JPY is likely to rise further toward the next buy target at the strong resistance level 189.600 (top of previous wave A).

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