GBP/JPY - 3 year lows and 2016 support level currently being tested. Expecting a bounce from support and to hit targets as shown above. Will wait for confirmation before entering a trade. If this pair breaks the support level, i expect to see huge bearish movements throughout next week. Will look to see how this one opens next week before entering a trade.
what is disturbing about this, and what indicates to me huge bearish already, as yes we will get a little pull back here to the top side, but after that the bottom will fall out again. you gotta follow PA, and that mac'd has bearish divergence to me, and price has to follow to the down side. look at the trend in the mac'd and compare or overlay it on the PA, mac'd looks bullish since march it is trending up, but PA is staying in a range. As to weather the indicator is a leading indicator remains to be seen, but typically divergences do pan out, and its all a part of the ongoing continual flow in the forex market from consolidation to expansion. Its like when you have a pair that correlates, with another pair, you overlay the PA and where they come together, thats normal, anmd where they move apart that is the deviation or divergence and pairs that are correlated are like married couples, they get in fights, BUT they ALWAYS come back together, except in the case of a divorce lol
Paulgosal
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Hi What is PA and are you using what time frame ? Weekly, Daily ?. Many thanks.