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9 Dec 2015
GBP/JPY flashing a “Death Cross” signal
GBP/JPY is displaying a “Death Cross” on 4hr charts, which is considered a harbinger of bad things to come.
This technical event happens when a short-term moving average falls below its long-term moving average, in this case a crossover between the 100-period and the 200-period MA.
The existence of a Golden Cross does not in itself justify buying a market. Therefore, only a bounce towards the crossover level would allow traders adhere to the trend at fair valued prices following an otherwise lagging signal.
This technical event happens when a short-term moving average falls below its long-term moving average, in this case a crossover between the 100-period and the 200-period MA.
The existence of a Golden Cross does not in itself justify buying a market. Therefore, only a bounce towards the crossover level would allow traders adhere to the trend at fair valued prices following an otherwise lagging signal.