FXWIREPRO: GBP/JPY Intraday Bull Swings Likely Extend to Resistance at 156.200 But Long Term Downtrend
The bounce back above trendline is reasonable, now facing a stiff resistances at 156.200 and upper trendline.
Daily price jump above trend-line support has momentum that is signalled by RSI & Stochastic oscillators, but MACD's bearish crossover and since the current prices have slid below 21DMA, we uphold the stiff resistance at 156.200, sloping upper trend-line & 21DMA too.
Downtrend has shown more than 50% Fibonacci retracements, so any minor spikes should not deemed as a reversals, instead use those rallies to deploy long term shorts.
Massive volumes build ups were observed on declining prices.
Current prices well below EMAs despite upswings, 21EMA crossover 7EMA.
We are not isolating this signal, both leading and lagging oscillators indicate selling pressures on monthly plotting.
On intraday speculative basis, since current implied volatility is very high over 16% on the eve of BoE's monetary policy that is scheduled on Thursday, it is good to buy one touch binary vega calls favouring above technical indication of momentary upswings.
Alternatively, short term bears can stay short in mid month futures for targets upto 156.180 levels with stiff stop loss of 162 levels.
The material has been provided by InstaForex Company - www.instaforex.com