FxWirePro: GBP/JPY Trade Idea

• GBP/JPY has halted its 6 days of weakness and has jumped almost 90 pips from the low of 145.46. The pair has lost more than 350 points in previous week. GBP is trading higher for the third consecutive day and jumped till 20- day MA at 1.3715 on account of broad based US dollar selling and short covering UK’s weak economic data and Brexit uncertainty will prevent further upside in pound sterling. A weaker than expected UK macro data would dampen the chance of rate hike by BOE in August month. The pair hits intraday low of 145.53 and is trading around 146.14.
   
• The pair is facing strong resistance at 146.60(20- day MA) and any break above will take the pair till 147.17 (55- day EMA)/148.18.
   
• On the lower side, near term support is around 145 and any break below will take the pair to next level till 144.35/143.
  
  It is good to sell on rallies around 146.25-30 with SL around 146.70 for the TP 145/144.35.    

Resistance

R1- 146.65

R2 –147.20

R3- 148.18

Support               

S1- 145

S2- 144.35

S3-143