Home Forex The Rising Wedge was broken. Is this an early indication for GBPJPY?

The Rising Wedge was broken. Is this an early indication for GBPJPY?

by SuperiorInvest


The Bank of England appears to have ruled out the idea of ​​retreating to previous derivative market prices, which meant Bank Rate could reach 5% it will cripple the pound’s exchange rate against most other currencies in the coming months, exposing it to further risk.

Thursday’s decision to increase the bank rate by ¾ percentage point to 3% it met market expectations, despite the disappointment of the BoE’s latest economic forecasts and warnings of hints about the future outlook for interest rates.

Meanwhile, Japan’s finance minister Suzuki warned that Japan could intervene in the currency market “at any time” to prop up the yen. Trading activity in the yen was light on Thursday as Japanese markets were closed for a cultural holiday.

Technical analysis

GBPJPY fell more than -1.7% in Thursday’s trading, the 4th day of a decline that began earlier this week. The price was seen to break the bottom line of the Rising Wedge pattern to match the weekly low 165.00. The divergence bias for the H4 period is clearly visible. On the other hand, it could test another decline 159.72 support while on the side up 168.41 the price level could be a retest area that would bring further downside in the short term. Currently, the price is below the Kumo with the Tenken-sen and Kinjun-sen crosses on the upside.

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Ada Phangestu

Market Analyst – HF Educational Office – Indonesia

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