By Yan Petters – The GBP/JPY pair saw a sharp bullish movement during the past couple of weeks. Over this time period the pair gained over 700 pips, and soared from the 131.00 level to the 137.50 level. Currently, the pair is trading near to the 136.80 level, yet as several technical indicators show, another bullish movement could be impending.
• The chart below is the GBP/JPY 4-hour chart.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD and the Relative Strength Index (RSI).
• As demonstrated on the chart, a flag pattern has been formed. This indicates that further bullishness could be expected.
• The Slow Stochastic has completed a bullish cross, indicating that the bullish move might be imminent.
• The RSI is pointing upwards, providing yet another signal that the pair might be boosted soon.
• The next resistance levels are placed at the 137.50 and the 138.00 levels.
• The next support levels are placed at the 136.50 and the 135.80 levels.
Forex Market Analysis provided by ForexYard.
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