I suspect we are nearing the end of the sideways correction on GBP/JPY which means the bullish run will resume.
We can see the bullish channel continues to hold and have come to respecting the lower channel. Indeed there is the risk of a deeper retracement towards the lower channel but the price action on the daily timeframe is giving me greater confidence we are approaching another bullish (and parabolic) phase.
In the event we do retrace deeper we have the lower bullish channel and 21 week eMA around 168 which may help support.
Looking at the daily chart, whilst we are producing marginally lower highs, we also have higher lows within increasing momentum to suggest overall the bulls are in control and we should be expecting a bullish breakout. It is also reminiscent of an 'Inverted Head and Shoulders' which is a bullish continuation pattern in an uptrend. (Those who enjoy their fractals should be interested to note the pattern is very similar to the one seen between September-October '13, only much larger).
We could assume a continuation of the uptrend on a break of the descending resistance line, but a slightly more cautious approach is to wait for a break of the 173.15 swing.
We also have the monthly pivot which may provide bullish setups should we retrace towards this area and provide a mini bullish set-up prior to any breakout of the descending resistance.
