GBP/JPY has recently completed the extended Double Bottom chart pattern identified by Autochartist on the daily charts. The length of this chart pattern is equal to 133 candles. The overall Quality of this Double Bottom is measured at the 6 bar level as a result of the sharp Initial Trend (rated at the maximum 10 bar level), average Uniformity (5 bars) and lower Clarity (3 bars). This chart pattern reverses the previous prolonged downtrend from the August of 2009.
Both of the connecting points of the lower support trendline of this chart pattern (points B and C on the chart below) formed when the pair reversed up twice from the major long-term support 118.00 (which had previously reversed the sharp downtrend in the January of 2009, as is shown on the second chart below). The top of this chart pattern (point A on the chart below) formed when the pair corrected down from the former strong level of support 127.00 (acting as resistance after having been broken by the downward price impulse preceding this Double Bottom). The latest upward price impulse from point C broke through the medium-term resistance trendline connecting the monthly reversal high from the April of 2011 and the point A. The subsequent sharp advance broke through the upper resistance trendline of this chart pattern coinciding with the longer-term downtrend line connecting the monthly downward reversal points from the August of 2009 and the April of 2011. The pair is expected to rise further toward the Forecast Price 132.02 in the coming sessions.
The following weekly GBP/JPY chart shows the longer-term picture of this currency pair's movement along with the aforementioned technical price levels:
For further information on this and other Autochartist products visit www.autochartist.com