Imminent Breakout in GBP/JPY as Price Tests Critical Levels
27 August 2025
In today’s technical analysis, let’s turn to the British Pound against the Japanese Yen, which is currently testing a decisive resistance area. Since the middle of August, the pair has been moving inside a symmetric triangle formation, marked with red lines. The narrowing of price action signals that the market is building energy, and with the apex of the triangle approaching, a breakout is imminent.
On Wednesday, as the Asian session wrapped up, GBP/JPY tested the upper boundary of the triangle as well as the orange horizontal resistance – the highs from yesterday. The result was a rejection. The price bounced lower, creating a first bearish reaction to this critical resistance zone. This shows that sellers are still active and not ready to surrender control just yet.
Trading this setup requires patience and confirmation. A daily close above the orange resistance and the upper red line of the triangle would activate a buy signal, opening the way for a stronger bullish leg. On the other hand, if the price reverses lower and ends the day below the lower red line of the triangle, that would trigger a strong sell signal and mark the beginning of a bearish breakout.