GBPJPY trading range is narrowing we await a break out soon

May 12, 2014 by Nanakiver3

With GBPUSD and USDJPY almost trading with an inverse correlation we can see this in the GBPJPY cross as a narrowing trading range despite a double bottom forming at the 17.20 we have a 3 touch trend line capping rallies.


GBPJPY Daily chart

With this in mind many traders may look to trade this range however for me I prefer waiting for a break out as this is likely to give a longer term trend. Due to the nature of the FX market stops are likely to be triggered either side of this before the trend develops so avoid getting sucked in.