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12 Oct 2016
GBP/JPY is oversold on several parameters
The standout technical signal on a GBP/JPY 4hr chart is a plunge of the RSI below its 25% threshold.
At the same time, negatively aligned 50- and 200-period moving averages point at a continued GBP/JPY depreciation, with recent declines locking the RSI below the 50% mark. Worth mention is the 70% level which hasn't been explored for a while on the 4hr time frame.
Should the GBP/JPY be unable to wave any additional bearish impulses, the mentioned momentum readings raise the odds of a minor squeeze back upwards.
At the same time, negatively aligned 50- and 200-period moving averages point at a continued GBP/JPY depreciation, with recent declines locking the RSI below the 50% mark. Worth mention is the 70% level which hasn't been explored for a while on the 4hr time frame.
Should the GBP/JPY be unable to wave any additional bearish impulses, the mentioned momentum readings raise the odds of a minor squeeze back upwards.