For the fifth consecutive day the GBP/JPY currency pair has been in a downward direction movement which pushed the prices back from 137.77 to 135.57 (220 pips in five days). The pair is trading now at 135.80 and it's stable below the 50% Fibonacci from the upside wave from 124.81 to 148.47. It's expected that the pair's daily close will be below 50% and lead the pair to 61.8% levels.
For the coming weeks it's expected that the pair will rise after we saw the Golden Cross last month. This happened when the SMA 55, 100 and 200 cut across and the SMA 200 slope turned upside on the daily time frame. The Stochastic indicator gave us a buy signal when the two lines crossed and made the oversold process, but today we don't expect any large movement because due to the Easter holiday most of the banks are closed.
The Next Few Days
From this analysis of the daily chart we can sell the pair now from the current prices at 135.80 and keep our first target at 134.70 and the second one at the 61.8% at 133.80. However, if the pair makes a bullish price action candle on the H4 chart, we can buy it with large targets at 138.50 and 141.20.
We have to be careful in the upcoming days regarding hot news like Carney's speech on Thursday and the Retail Sales on Friday from the UK.
