An average day in the market. I never expect much on Mondays. Most often I do more analysis on the days like this. I have been looking at gbp/jpy pair recently and see that it is oversold on 4 hour and 8 hour charts. I use 14 day RSI to determine this. On 4 hour chart you can also clearly see a divergence of RSI indicator. The price has been falling for some time, but a new low in price on the 5th of May failed to register a new low on RSI. As gbp/jpy is in a range bound market with some sideways action and upward and downward swings you can more trust RSI than you would in a clear up or down trend.
You can see the point which could be used for going upwards. It is 132.80 level. We only have serious news from Great Britain on Wednesday (Bank of England Inflation Report) at 9:30 GMT. This piece of information can set the market and especially British pound pairs on fire. As there is nothing certain in the markets nowadays (there have never been) I would place ½ of a position (buy stop) in case the pair moves up today or tomorrow without any release of news. It would not be the best trade, but if the market moves, you would not be left behind.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.