GBP/JPY struggles at 8-weeks highs, add longs on dips

FX:GBPJPY   British Pound/Japanese Yen
316 0 11
GBP/JPY struggles at 8-weeks highs, add longs on dips as breach of resistance at 131.868 with bullish DMA crossover likely to drag rallies:

Since 10th October we saw whipsaws pattern, the pair hasn’t moved anywhere beyond 128.498 northwards nor even 125.289 on southwards. But for now, the current prices jump above DMAs with bullish crossover after whipsaws to hit fresh 8-weeks highs of 134.324 levels.

More rallies are likely to drag further upto 135.25 levels upon break-out above resistance at 132.023 levels.

The bears in major trend have been giving space to bulls (see weekly chart), it seems like a bottoming out at supports of 126.277 levels to bounce back above 7EMA on weekly terms.

While both leading and lagging indicators to substantiate on daily and weekly terms.

We are not isolating this signal; let’s have a glance on both leading and lagging oscillators on daily terms that indicate buying interests.

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

While RSI (14) converging to the price upswings even above 70 levels that signal the strength in bullish interests.

Stochastic oscillators have also reached overbought territory but still evidencing %k crossover, that signals healthy momentum is observed.

MACD on daily terms evidences bullish crossover at zero levels that signify the sentiments of ongoing uptrend extension.

Trade tips:

Well, as the momentum in upswings is intensified and trend indicators also signal dramatic reversal movements, considering the prevailing trend at spot ref: 133.882 it is wise to add longs in near month futures for targets of 135.650 levels with strict stop loss of 132.023.
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