Asian equities markets had mixed performances in today’s trading, following the Federal Reserve’s surprise rate cut yesterday. The Nikkei 225 was virtually unchanged when it closed with a 0.08% or 17.26-point profit at 21,099.99. Meanwhile, the Shanghai Composite Index had a 0.63% or 18.769-point gain at 3,011.666. On the other hand, the Hang Seng Index is trading lower by 0.48% or 126.5 points at 26,222.1.
The hourly time frame supports the bullish bias reflected on the higher time frame. GBPJPY has been consolidating in a downward slope after its aggressive sell-off. Consequently, a falling wedge pattern has formed. This chart pattern is considered as a bullish reversal signal. A bullish close above yesterday’s high at 138.54 could mean that GBPJPY may soon trade to 141.50 where the currency pair previously found support.
On the other hand, a drop below today’s low at 136.93 would invalidate this bullish setup. Instead it could signal further downside on GBPJPY, possibly to 135.70 where the currency pair topped on September 20.More content