GBPJPY pair has been recovering up since NY session yesterday.  However, looking at H4 chart, it is still Bearish market.   The price is now approaching to 21EMA while Stochastic is coming up to 75% area expecting to turn down sometime in the near future.   One possibility would be to turn down from 187.30 ish (from 21EMA)?

 

2015-08-28_13-02-52-GJ1

 

 

Now let’s examine Hourly chart (below).  The price is riding 55EMA.  So the down speed has been down, and expect to see higher low, or double bottom?  However, based on the Stochastic, it is not too crazy to assume the price will come down eventually.

One little concern is… I took a smaller fibonacci on the Hourly chart, and now the price is a little above 61.8%.  187.30 (mentioned above as a possible short entry) is 78.6%!

2015-08-28_13-07-14-GJ2

Also based on the analysis of USDJPY pair going up for a while, makes me wonder if GBPJPY will go down from this level.

Nonetheless, the market is always right.  So let’s simply observe the market for today.  In order to confirm the down trend on Hourly chart, we have to see the price comes down below DPP (186.19) to form the lower-low.  Until then, it may make sense to stay bull and try to pick up smaller pips here and there.   But once you see Lower-Low, then you can remember this post.

 

Hope this analysis helps you develop your own trade plan.

 

YJ Baik – Forex.Today @ Tokyo

 

 

 

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