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
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Anton Eljwizat is a Currency Analyst with ForexYard. His experience in writing technical analyses for trading companies such as ForexYard has helped Anton stand out among other analysts. His understanding of technical indicators and chart analysis helps him provide some of the most groundbreaking analysis in the market today. His writings have been published on the ForexYard Trading Blog and affiliate websites. Anton holds a degree in Business Management from Ryerson University as well as a degree in Finance from Centennial College in Canada.
