By Anton Eljwizat
The pair has recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the daily chart signals that a bearish reversal is imminent, and it might have the potential of reaching towards 1.3200 levels in the coming days. This might be a good opportunity for forex traders to enter the trend at a very early stage and a great entry price.
• Below is the 8-hour 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: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.
• Point 2: The Slow Stochastic indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 4: The Williams Percent Range has peaked at the 0 marker and has turned bearish; this means that there may actually be a strong level of downward pressure.
GBP/JPY 8-Hour Chart
Forex Market Analysis provided by ForexYard.
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