GBPJPY trades inside triangle, waiting for breakout

In today’s technical piece, we are focusing on the GBPJPY who is just one step from a major buy signal. Even though we are very close, buyers are hesitating and sellers are doing their best to stop the upswing on their last line of defense.

For the past six weeks, GBPJPY is trading inside a symmetric triangle (red and blue lines). The last few days have brought upon constant pressure on the upper line of the formation (red). Together with this dynamic resistance, we have a horizontal one on the 167.3 (orange).

The price action here is pretty simple. GBPJPY breaking the two resistances and closing the day on the green rectangle or higher would be a great mid-term buy signal. On the other hand, the price bouncing significantly with a bearish rejection pattern would be a nice signal to sell. In my opinion, the first scenario is currently slightly more probable, so hunting the breakout with a buy stop order sounds like a very interesting idea.