GBP/JPY - Daily RSI still diverging, but watch out for a break
- Daily chart clearly shows lower lows on price and higher highs on RSI.
- Despite the drop in the prices to fresh multi-year low of 145.389, the RSI has stayed well above the its previous lows (marked by circles).
- The divergence indicates we could see a correction ahead. However, EU referendum is due next Thursday and fresh GBP selling cannot be ruled out.
- Bears should watch out for daily RSI breaking the rising bottom formation as that could be a hint of further sell-off in the pair.
