What I see
On D1, price has moved above the resistance at 211.985. It currently trades at 212.107, only slightly above that level. Since the September lows the chart has been making higher highs, and the advance is now pressing against the broken resistance.
Key levels
- 211.985: the broken resistance, now the first level I will watch as support
- 214.234: Resistance 1, my first target
- 217.255: Resistance 2, the next area where I expect a reaction
My plan
In my view, the Bank of England should be raising the Bank Rate. If that happens, I see big potential for GBP/JPY to rise. If price holds above 211.985 and keeps climbing, I am looking toward 214.234.
If price falls back below 211.985 and closes a daily candle there, the breakout has failed and I will reassess my view. The break is still fresh, so I am in no hurry.
