GBP/JPY 4H Chart: Triangle

Even though within the  triangle pattern the outlook for the Sterling against the Yen should be tilted to the downside, the market seems to be assuming the opposite. At the moment the pair is testing the pattern's upper edge at 159.23, which can theoretically trigger a short-term sell-off down to the 154.50 mark, namely the green uptrend. However, near-term technical indicators are pointing to the upside, while the SWFX market sentiment backs neither bulls nor bears. The 55-period SMA has just crossed the 200-hour SMA to the upside, and this is a clear bullish signal for the UK currency. In case we see a spike and consolidation above 159.23, the focus will shift to the April peak at 162.80.