INDICATORS: RSI, Volatility, Volume, HMM
Weekly CHART PATTERN : resistance and support lines, W1 Chart.
The GBP/JPY pair is moving in a bullish dynamics with a resistance zone at 148.92 zone. The indicator analysis indicates a slightly bullish dynamics and it can be supported by the Hidden Markov Models Analysis and the RSI momentum indicator. Standard Dev is relatively adeguate with a slightly bullish tendency. The chart can suggest a bearish retracement.
The D1 scale indicates that the patttern is in a slightly bearish dynamics. The trend can lead to a possible bearish retracement with objectives at zone at 141.777. The JPY recovery can be supported by the Industrial Production release forecast.
To give an evaluation of the possible movements of the cross it is utilized the Hidden Markov indicator techniques.
With the combination of the price lines and the stochastic Hidden Markov Processes are indicated two possible forecast value.
  1. The forecast value in the bullish is valued at 148.92.
  2. The forecast with the trendless cycle is valued at 141.777.
Figure 1 describes in a W1 trendlines with the key price levels.

Figure 2 exhibits the hypothetical path and the forecast value

Considering the slope of the trends, the key level price and the possible retracement it can be evaluated a forecast price level at 141.777.
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