Forex: GBP/JPY: Hikkake prints at key support
Forex pairs in this Article »
GBP/JPY
FXstreet.com (San Francisco) - GBPJPY is sitting practically unchanged around the 124.30 price zone in late Asian trade after a bullish Hikkake pattern was printed on the daily chart.
Made popular by Daniel Chesler, CMT, founder of Chesler Analytics, Hikkake patterns are technical price action events that signal a market may be set for continuation after a period of consolidation, or that price may be poised for reversal at market highs and lows.
In the case of GBPJPY, after two days of consolidation, the pair managed to dip below the 124.00 support zone (Aug 22 low) overnight to hit a two-week low of 123.69 before rallying to close Noram unchanged from its starting price. This mentioned price behavior resulted in a false break in the market and the print of the bullish Hikkake pattern.
Worthy of note, the formation occurred in an area of confluent support: (a) Fibonacci support at 123.75 (38.2%, 120.82/125.56), (b) 21-day EMA (124.00) and 55-day EMA (123.82), and (c) horizontal support at 123.76 (27 July peak).
Made popular by Daniel Chesler, CMT, founder of Chesler Analytics, Hikkake patterns are technical price action events that signal a market may be set for continuation after a period of consolidation, or that price may be poised for reversal at market highs and lows.
In the case of GBPJPY, after two days of consolidation, the pair managed to dip below the 124.00 support zone (Aug 22 low) overnight to hit a two-week low of 123.69 before rallying to close Noram unchanged from its starting price. This mentioned price behavior resulted in a false break in the market and the print of the bullish Hikkake pattern.
Worthy of note, the formation occurred in an area of confluent support: (a) Fibonacci support at 123.75 (38.2%, 120.82/125.56), (b) 21-day EMA (124.00) and 55-day EMA (123.82), and (c) horizontal support at 123.76 (27 July peak).
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