On daily chart even though some bearish candles like 'spinning top' appear on GBP/JPY's on uptrend rallies, this should not be deemed as reversal as leading oscillators moving in convergence with the stagnant range 194.363 to 192.288 from 5-6 trading days.
And in addition to this, even though slow stochastic reaches overbought zone there was no trace of %K line crossover as bulls were not ready to give up the rallies.
14 day RSI gives a hint of upward price convergence with the bullish strength. RSI (14) currently trending around 54.0472, while Slow stochastic does not provide clear signal (%D line = 87.7771 & %K line = 85.8282).
Currency derivatives trade ideas:
As a result of above technical observation we look ahead for slight dips in the near future but uptrends holds stronger. So, if someone thinks this has been the right time to get benefitted from probable price falls in coming sessions by leveraging advantage through fresh short build ups on near month GBPJPY futures contracts, then wiping up of their capital would be certain event.
At times, only buying or selling would never make someone successful in trading, it is all about controlling one's instincts and follow trade discipline. When there is obscure information about a trend it would rather better to do nothing. Speculators, wait for the right time and the best opportunities. Meanwhile, we would come up with the options framework for hedgers in our upcoming posts.
