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GBP/JPY Price Analysis: Bulls eye 157.00 and the weekly inverse H&S

  • Weekly inverse H&S is in the making for a bullish continuation.
  • GBP/JPY bulls looking for a close above 157.00 for conviction. 

GBP/JPY is pressing up against the weekly neckline of the inverse head and shoulders, although the Russian risk is preventing bulls from breaking higher on lower time frame advances. Nonetheless, a weekly bullish candle close on Friday will leave the bulls in good stead for the foreseeable future:

GBP/JPY weekly chart

The inverse head and shoulders is a bullish chart pattern, although arguably, the formation is not as symmetrical as investors might wish to see. With that being said, the principal objective is for there to be demand on the way up to carry the price over the line which is seen in the build-up from December's rally.

The correction was met with strong demand in the first instance. However last week was a weaker close. Bulls will be prudent to wait to see how the next days play out and a close above 157.00 would be encouraging. 

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