GBP/JPY: Possible bullish pattern with limited potential?
Not sure about the validity of the pattern because of the C point being so high..
We might see some stalling at the current level because of this small trendline (+ divergence on RSI and MACD) but I do suspect this will be limited.
If we get below the current trendline, completion of the bat should come soon (divergence on the daily building).
I am however worried that this bat will not yield what it normally would (up to 61.8%) because of the fact that JPY will continue to be one of the safe-haven currencies and the recent moves have been so violent (and I supect we will see more of that in the coming weeks/months, world is beginning to see overvaluation everywhere...).
So maybe some retracement to that trendline or possibly above to the 38.2 retracement of the CD-leg but i don't see it going too much further up (or I wouldn't bet on it would be better wording!). We might see that lower lying trendline come closer soon after that I would guess... On the other hand: a struggling market can make all sorts of crazy moves...
For now preferring to catch the downward moves...
If we see decent recovery next week then I will adjust my views and might aim higher on the bat scenario!
As always, we'll see how it develops! Good luck!
We might see some stalling at the current level because of this small trendline (+ divergence on RSI and MACD) but I do suspect this will be limited.
If we get below the current trendline, completion of the bat should come soon (divergence on the daily building).
I am however worried that this bat will not yield what it normally would (up to 61.8%) because of the fact that JPY will continue to be one of the safe-haven currencies and the recent moves have been so violent (and I supect we will see more of that in the coming weeks/months, world is beginning to see overvaluation everywhere...).
So maybe some retracement to that trendline or possibly above to the 38.2 retracement of the CD-leg but i don't see it going too much further up (or I wouldn't bet on it would be better wording!). We might see that lower lying trendline come closer soon after that I would guess... On the other hand: a struggling market can make all sorts of crazy moves...
For now preferring to catch the downward moves...
If we see decent recovery next week then I will adjust my views and might aim higher on the bat scenario!
As always, we'll see how it develops! Good luck!
