Yen crosses seem to over-bought all across the FX Market in general. GBP/JPY is no exception and it offers a nice trade opportunity that could get us in and out within a few days.
We are in fact at a major resistance level, with a descending trendline dating from December 2013 supporting that call. Since I haven't seen any doji-like candle on the daily chart, I started looking more deeply into lower timeframes and found strong divergence between P.A. and RSI.
R-R-R is very good on this trade as we are near resistance.
This trade plays more on momentum and technicals than fundamentals as there is nothing coming out tomorrow for any of these pairs (except HHP for the pound which should not be a market mover). Next week however there is incoming data from England so we will have to look into that when the time comes but for now, the coast is clear.
*This could go wrong if NFP comes out way too strong tomorrow as it could completely shut-down investors' risk aversion*
But this pair should not be affected too much.
L.F.
We are in fact at a major resistance level, with a descending trendline dating from December 2013 supporting that call. Since I haven't seen any doji-like candle on the daily chart, I started looking more deeply into lower timeframes and found strong divergence between P.A. and RSI.
R-R-R is very good on this trade as we are near resistance.
This trade plays more on momentum and technicals than fundamentals as there is nothing coming out tomorrow for any of these pairs (except HHP for the pound which should not be a market mover). Next week however there is incoming data from England so we will have to look into that when the time comes but for now, the coast is clear.
*This could go wrong if NFP comes out way too strong tomorrow as it could completely shut-down investors' risk aversion*
But this pair should not be affected too much.
L.F.