GBPJPY - She kept on going but has she had enough?

Good evening ladies and gentlemen

I hope you all had a prosperous day in the market, whether it be financial or that your technical analysis has taken a step forward.

So to the GBPJPY. Yesterday we left her in a very interesting position on the 4 hr chart where price was reapproaching a fib breather level. Certain indicators were saying that price was likely to continue and they were not wrong. Price shot staright through to a R turned S zone and since then produced a bullish engulfing candle and reversed. on the 1 hr chart, what confluences can we see that could have warned us that a reversal may be on the cards?

Price moved around a whopping 500 pips in 3 days so with all big moves there is usually a period of consolidation before a further move in that direction. The daily is showing a bullish candle. So given that, what are we witnessing unravelling before us?

On the 4 hr price is at the VI and MACD is doing lower lows with a cross over of the midline looking a possibility. Stochastics is also looking interesting with the signal lines crossing over and OS. RSI is heading up but not yet crossed over the midline. What are the same indicators saying on the 1 hr chart? If we are seeing a retracement where will it go to? I will leave it to you to determine what may (not will!!) happen next! We will look at the 1 hour chart tomorrow to check if our analysis was correct!




Alright Rich. Hope you are well my good man! I had a feeling my answer was wrong. OK so the film is The Rock. Again I haven't seen it but apparently it has a nice Ferarri!

My riddle for tonight is what's my favourite alcoholic drink? A glass of red wine or a snake bite?

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari