{"id":11109,"date":"2010-07-15T09:25:22","date_gmt":"2010-07-15T13:25:22","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=11109"},"modified":"2010-07-15T09:25:22","modified_gmt":"2010-07-15T13:25:22","slug":"gbpjpy-ascending-triangle-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/07\/15\/gbpjpy-ascending-triangle-trade\/","title":{"rendered":"GBP\/JPY Ascending Triangle Trade"},"content":{"rendered":"<p><strong>By Russell Glaser<\/strong> &#8211; The pair has been consolidating over the past 6 weeks while forming a  chart pattern that looks to break to the downside in a continuation  with the long term trend.<\/p>\n<p>Following the sharp deprecation in the  price of the pair during the month of May, the GBP\/JPY has consolidated  its losses and has formed an ascending triangle pattern.<\/p>\n<p>A halt to the trend can be verified by the flat 20-day exponential  moving average. Also a significant drop off in volatility is shown by  the decrease in the Average True Range (14). A tightening of the daily  chart\u2019s Bollinger Bands confirms the reduced volatility in the pair.<\/p>\n<p>Because the long term trend is to the downside, it is assumed that a  breakout will be in this direction. However, traders are not limited to  one direction in this trade setup. By placing a stop on the inside of  the triangle to guard against a false breakout, losses can be minimized  should the breakout fail to materialize. Therefore, a trade setup can be  in either direction.<\/p>\n<p>A breakout to the upside would target the resistance level at 138.25,  followed by the significant resistance line of 139.25 and a long term  target at 140.50, the 38.2% Fibonacci retracement level from the  downward trend that began in August of 2009.<\/p>\n<p>If the long term trend continues and the pair breaks out of the  triangle to the downside, the first target would be the support at  131.30, followed by the bottom of the downward trend at 126.75.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/07\/GBPJPY-Triangle.JPG\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/07\/GBPJPY-Triangle.JPG\" alt=\"\" width=\"595\" height=\"575\" \/><\/a><\/p>\n<p><strong><em>Forex Market Analysis<\/em> provided by <a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">Forex                           Yard.<\/a><\/strong><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                           may not be suitable for all investors. There  is  a              possibility      that     you   could sustain a loss  of  all   of    your         investment and      therefore  you      should   not    invest   money  that   you      cannot afford to       lose. You    should    be      aware of   all   the    risks    associated with     Foreign      Exchange    trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Russell Glaser &#8211; The pair has been consolidating over the past 6 weeks while forming a chart pattern that looks to break to the downside in a continuation with the long term trend. Following the sharp deprecation in the price of the pair during the month of May, the GBP\/JPY has consolidated its losses &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/07\/15\/gbpjpy-ascending-triangle-trade\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;GBP\/JPY Ascending Triangle Trade&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11109","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=11109"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11109\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=11109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=11109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=11109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}