GBPJPY: Bearish Divergence and When to Sell
British Pound/Japanese Yen FX:GBPJPY
The market looks interesting for selling. The price broke the local uptrend line, and it gave a trend reversal signal. The bearish divergence also confirms that the uptrend can be reversed. RSI confirms the price reversal from 135.400 resistance level . MACD histogram and lines support the downward movement. DMI does not show the strength of buyers, and it allows us to open sell trades.
We can think about selling if the price breaks the nearest support zone formed by SMA50 and 134.00 support level . Stop-loss orders for such short trades must be placed above the local swing high. Profit targets should be at Moving Averages with 100 and 200 periods and at the support levels.
Source: TW DLavrov