I am a big fan of Divergence. Perhaps due to the Summer thin market, I see many divergences.
GBPJPYis one of them.
This Pair is riding 21EMA, meaning very strong uptrend. However, the price is going up, while Stochastic is going down. Yes, this is a bearish divergence. Also the price is approaching to the hardcore resistance. Thus I am looking for a short opportunity.
Here is H4 chart. Stochastic wants to go up from the current level. I would like to wait until the Stochastic up cycle is over. When it is over, please check the price. If the price is less than 195.21, meaning to form either Triple Top, or Lower-High, then I would like to go Short.
The target? I would say WPP (193.17).
This trade could be for tomorrow, or even for the next week.
YJ Baik – Forex.Today @ Tokyo