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GBPJPY has seen a significant ascent towards 4-month highs.
The currency pair has been looking to break away from the median regression to attempt another breakout of the upside channel.
However, the recent hidden divergence followed by a standard divergence hints towards a shift in the trend.
With prices hovering at the mean, a move towards the lower channel, which is a confluence of the top border of the Ichimoku cloud, could be likely.
Should the trend shift to the downside, then Q4 lows could come into play.
An intraday outlook shows a slight move above the mean of the long-term channel. However, with the momentum indicator hinting at a strong hidden bearish divergence, prices could start to wane.
Recent highs at the mid-141 range could be a step too far, as the first target for downward bias would be the 23.6% of the 139.48/141.37 upward Fibonacci leg.
Should prices reach the 38.2%, then cloud engulfment would take effect and weigh on the pair further. Fresh yearly lows will then...
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