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GBP/JPY technicals & trade setup

FX:GBPJPY   British Pound/Japanese Yen
165 0 11
GBP/JPY bears likely to drag further after gravestone doji – Stay short via one touch binaries as BOE rate cut hopes intensify:

From last two days, the pair hasn’t been moving anywhere beyond 135.567 northwards nor even 133.899 on southwards.

But prior to that, it has rejected the resistances at 139.155 levels to push below DMA curves on the  daily chart . Bears have managed to slide below 7EMA after gravestone pattern on a weekly chart as well, for now, the drag towards 129.750 seem more likely.

We are not isolating this signal, both leading and lagging oscillators indicate selling pressures.

The current prices have drifted below both EMA & DMAs, so downtrend would likely continue in the long run. 21DMA is on the verge of crossing over 7DMA.

Selling momentum is intensified as we can make out from the leading oscillators converging downwards along with the dipping prices.

While RSI (14) trending below 40 levels that signals the strength in selling interests.

Stochastic oscillators have reached oversold territory but no convincing %k crossover is seen, instead intensified selling momentum is observed.

On a broader perspective, it's been urged price declines ever since the pair formed "hanging man and shooting star" patterns on peaks of uptrend monthly chart.

Trade tips:

Well, since implied volatility is very high in GBP crosses on the eve of BoE's monetary policy which is most likely to ease about 25 basis points, on an intraday speculative basis, it is good to buy one touch binary vega             puts favouring above bearish technical indication.

Alternatively, short-term bears can stay short in mid-month futures for the desired targets to retest recent lows up to 128.602 levels with strict stop loss of 139.155 levels.
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