While my medium to long term perspective on GBPJPY remains bullish, I am expecting a short term downside before the buyers come back to push price higher.
This gives me a short term sell opportunity this week -
1) Price is forming a diagonal structure, a reversal pattern;
2) We are seeing a RSI divergence, showing a lack of strength and momentum to push price higher; and
3) Price has reach a 200% fibonacci extension, completing the minimum criteria for wave 3, giving me an expectation that we might be seeing a wave 4 correction soon.
However, taking reference from USDJPY, we might still see price continue to inch higher first before the fall / correction comes.
Keeping a close watch for a potential sell setup this week.
P.S. USDJPY, EURJPY and GBPJPY are all presenting similar setups.
**Take reference from USDJPY as it will 'lead' the others :)
This gives me a short term sell opportunity this week -
1) Price is forming a diagonal structure, a reversal pattern;
2) We are seeing a RSI divergence, showing a lack of strength and momentum to push price higher; and
3) Price has reach a 200% fibonacci extension, completing the minimum criteria for wave 3, giving me an expectation that we might be seeing a wave 4 correction soon.
However, taking reference from USDJPY, we might still see price continue to inch higher first before the fall / correction comes.
Keeping a close watch for a potential sell setup this week.
P.S. USDJPY, EURJPY and GBPJPY are all presenting similar setups.
**Take reference from USDJPY as it will 'lead' the others :)