GBP/JPY: Tightening in volatility is often a forerunner of a strong move - Natixis
|According to Micaella Feldstein, Research Analyst at Natixis, the strong tightening in the GBP/JPY volatility, which was seen in the last days on the daily chart, is often a forerunner of a strong move.
Key Quotes
“As the daily indicators have turned around and as the weekly stochastic has turned bearish, this move should be on the downside for the cross.”
“We’ll recommend keeping a lookout at the support at 139.20 (38.3% Fibonacci retracement of the 124.11-148.50 wave – oct 16-dec 16) whose break would add weight to this bearish view, unleashing strong downside potential to 136.70 (weekly Bollinger moving average) and even 134.03 (weekly parabolic) The resistances are at 142, at 144.60, at 146.80 and at 150.30.”
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