A small break before (final) sprint?
Updated
GBPJPY made an amazing sprint this week and might need some rest before attacking the brick wall that is the 162.40 - 164 region. Especially 164 could prove to be strong given price bounced at this level on numerous occasions in the past.
On the 4H time frame we see RSI and Stoch being overbought which indicates time for a breather. However, in the Daily chart these indicators are far from overbought.
Even better, on the Weekly TF we only just got out of the oversold region which even has a bullish divergence (price has LL; indicator has HL).
On this Weekly chart after 164 we could see 170.
GBP is strong risk is off and bare negative news this weekend (except Brexit fears which seem to have subdued) we should see a continuation of the bullish trend which actually just started. Heck, the Referendum could be a big bullish trigger to break above 170 which we might have reached by then.
If we don't break above 164 and fall the end of the referendum could signal a new sell wave or the push needed to move to 170. But this is heavy speculation.
But first things first. Coming week correction and continuation is what I see.
If price breaks below 158.25 and holds lower, I can see more bearish momentum instead of bullish.
On the 4H time frame we see RSI and Stoch being overbought which indicates time for a breather. However, in the Daily chart these indicators are far from overbought.
Even better, on the Weekly TF we only just got out of the oversold region which even has a bullish divergence (price has LL; indicator has HL).
On this Weekly chart after 164 we could see 170.
GBP is strong risk is off and bare negative news this weekend (except Brexit fears which seem to have subdued) we should see a continuation of the bullish trend which actually just started. Heck, the Referendum could be a big bullish trigger to break above 170 which we might have reached by then.
If we don't break above 164 and fall the end of the referendum could signal a new sell wave or the push needed to move to 170. But this is heavy speculation.
But first things first. Coming week correction and continuation is what I see.
If price breaks below 158.25 and holds lower, I can see more bearish momentum instead of bullish.
Note
Price tried to break above 162.40 region but couldn't and fell down. I took the fall after the BoJ news from 158.12 till 156.20.
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