4 Sep 2015
GBP/JPY intraday chart flashes warning flag
GBP/JPY could soon experience a period of short-term strength on an intraday basis to allow for some severe oversold studies to unwind.
While the 50 SMA is moving at a considerable distance below the 200 SMA on the hourly chart, the stochastic (14,3,3) threatens to change the bearish status quo. The oscillator has built a base under the 20% level for an entire session and has just emerged from oversold territory with the recent hourly close. This is a rare but not uncommon technical event warning of a potential short-term bottom.
Longer-term traders following the 4H stochastic, still under 50%, don’t necessarily need to liquidate their sell positions. Nevertheless, the 1-hour stochastic is increasingly backing the idea that it could be necessary soon.
While the 50 SMA is moving at a considerable distance below the 200 SMA on the hourly chart, the stochastic (14,3,3) threatens to change the bearish status quo. The oscillator has built a base under the 20% level for an entire session and has just emerged from oversold territory with the recent hourly close. This is a rare but not uncommon technical event warning of a potential short-term bottom.
Longer-term traders following the 4H stochastic, still under 50%, don’t necessarily need to liquidate their sell positions. Nevertheless, the 1-hour stochastic is increasingly backing the idea that it could be necessary soon.