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Bullish Momentum Meets Bearish Divergence: Is a GBP/JPY Correction Ahead?

Chart pattern- Bearish Divergence (CCI(50) 8-hour chart)

The GBP/JPY  hits a fresh multi-year high on board-based Yen weakness. It hit an intraday high of  199.83 and is currently trading around 1999.54.  Intraday trend is bearish as long as the resistance at 200  holds.

 

The GBP/JPY pair is trading above  55 and 200 EMA (Short-term) and 365 EMA (long-term) on the 8-hour chart, confirming a bullish trend.  Any violation below 199.35 indicates the intraday trend is weak. A dip to 198.78/198.40/197.70/196.70/196.25/195.25/194/193.70 is possible.  Immediate resistance is at 200, a breach above this level targets 202/204.

Market Indicators (8-hour chart)

CCI (50)- Bullish

Directional movement index - Buy

Trading Strategy:  Sell

 
 It is good to sell on rallies around 199.58-60 with SL around 200.50  for a TP of 198/197.40.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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