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. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.
• Below is the daily chart for the GBP/JPY.
• The technical indicators that are used are the Relative Strength Index (RSI), Slow Stochastic and Williams Percent Range.
• Point 1: The Slow Stochastic indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 3: The Williams Percent Ranges is showing that this pair is heavily over-bought and may be experiencing strong downward pressure.
GBP/JPY Daily Chart
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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