Vladimir Ribakov analyzes GBP/JPY using MACD divergences across monthly, weekly, and daily charts. The monthly and weekly charts show bearish divergence, suggesting a potential fake peak. Two scenarios could unfold: either a break of the recent low with sell-on-rally opportunities, or a bullish hidden divergence that triggers a final drop after a false breakout.
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longer term is looking to sell the rallies. I believe another low is due. And the final one for today gonna be pound yen, a little bit more aggressive but very, very interesting one. So here is what we have on the pound yen. We are currently around the high from the monthly chart, which is a significantly important level. Monthly chart is developing divergence. While the market attempts to make the higher highs, MACD makes lower highs. Weekly chart follows the same path, higher highs on the chart, but the MACD is structuring another potential fake peak, which means bearish divergence. And the daily chart actually already gives these signs, a bounce of the rising trend line with developing bearish divergence. So usually one of the, um, next 2 scenarios follows in that case. Scenario number 1, we actually managed to break this low, get some pullbacks, and as long as this high holds, looking for sell opportunities on the retraces— this is another important high, uh, to watch— could be a great trading opportunity as long as the peak holds. But there is a probability, because the weekly and daily are only forming the divergences, what could happen here is this turns to be Uh, final drop. Some bullish hidden divergence forms here. Higher lows on the trend, lower lows on the MACD histogram. Bullish divergence, bullish hidden divergence. From there, final run completing this condition: fake high under divergence. And then we have multi-timeframe divergences, and with the next false breakout look for the sell. So these are the 2 scenarios I follow on the pound yen.
