By Yan Petters – The GBP/JPY pair recently saw an extraordinary bullish trend, gaining almost 700 pips and peaking at the 133.77 level. However, the pair saw several failed attempts to reach to the 134.00 level, and a bearish correction appears to be imminent.
• The chart below is the GBP/JPY 8-hour chart by ForexYard.
• There is a very notable bullish trend line, which took off at October 27, and has peaked on November 12, at the level of 133.77.
• However, the pair saw about 4 failed attempts to cross the 133.80 level, indicating that the bullish pressure is losing steam.
• Currently, a bearish cross has been forming on the Slow Stochastic, suggesting that a bearish move might be impending.
• In addition, the RSI is now pointing down, also indicating that a bearish move could be imminent. If the RSI will fall below the 70-line it might validate the bearish correction.
• The next support levels are located at 132.85, 131.90 and 130.95
• The next resistant levels are located at 133.80 and 135.00
Forex Market Analysis provided by ForexYard.
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