28 Oct 2016
GBP/JPY presently hesitating
Outlined from an hourly perspective, GBP/JPY's set-up consists of an upward trajectory coupled with extremely low volatility numbers.
Usually associated with the charting of narrow ranged channels, there is an increasing probability for volatility to pick up again and, in view of the abated upside momentum, for price to roll over and start a down move.
In its search for a new fair value beyond the confines of the consolidation, there is potential to move towards the 200 EMA once the immediate support represented by the 50 EMA is taken out. On the upside, an acceleration above the recent highs would have the potential channel resistance as a first hurdle.
Usually associated with the charting of narrow ranged channels, there is an increasing probability for volatility to pick up again and, in view of the abated upside momentum, for price to roll over and start a down move.
In its search for a new fair value beyond the confines of the consolidation, there is potential to move towards the 200 EMA once the immediate support represented by the 50 EMA is taken out. On the upside, an acceleration above the recent highs would have the potential channel resistance as a first hurdle.