By Anton Eljwizat – The sustained upward movement of the GBP/JPY pair doesn’t seem to be receiving much resistance lately. As I will demonstrate below, the price of GBP/JPY may very well be heading for a correction, and it might have the potential of reaching towards 1.4000 in the coming days. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.
• The chart below is the 8-hour GBP/JPY chart by ForexYard.
• The technical indicators that are used are the Relative Strength Index (RSI), Slow Stochastic and Williams Percent Range.
• Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 3: The Williams Percent Ranges is showing that this pair is heavily over-bought and may be experiencing strong downward pressure.
GBP/JPY 8-Hour Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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