GBPJPY cross with a nice bullish divergence


The Asian session on Monday started negative for risk-on assets, and a steep sell-off occurred. However, the EU session is beginning to look a bit more positive as the dip has been bought (at least for now). The GBPJPY cross is currently trading unchanged on the day at around 134.50.

There is a nice bullish divergence between the price and the RSI indicator on the one hour chart, which could be a bullish signal.

The first resistance is seen at the bearish trend line of June's highs, which is near 135.00. If the price breaks above this level, the short-term trend could improve, targeting the 136.00 zone.

Alternatively, if sentiment worsens again, the intraday supports could be located at 134.00 and afterward near the daily lows of 133.50. Should the cross drop below this level, the short-term bearish trend would be confirmed, targeting the 132 level.

Volatility in this cross is still elevated, which benefits short-term traders. As most of the JPY crosses are just copying equity indices, if equities will continue higher, we could see some buying pressure in here as well and vice versa. 
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