FxWirePro: GBPJPY continues to trade lower on weak pound sterling, good to sell on rallies

Ichimoku (Daily analysis)

Tenken-Sen- 133.64

Kijun-Sen - 135.82

GBPJPY continues to trade lower for the 4th consecutive day after a minor recovery of more than 130. The pair has a broken low of 131.61 after the BOE policy meeting. It is currently trading around 131.29.

Technical of GBPUSD:

The cable has shown a massive sell-off and declined below 1.2100 level for the first time since Jan 2017 after BOE cuts growth forecast due to Brexit uncertainty and global slowdown. The pair is trading slightly below1.2100 and a dip till 1.20445 levels is possible. Momentum indicators RSI is in oversold and showing bullish divergence pattern. Any major trend reversal only above 1.2230.

USDJPY has pared all its gains made yesterday. It hits a high of 109.31 and declined more than 80 pips for the day.

On the higher side, near term resistance is around 131.70 and any violation above will take the pair till 132.25/133/133.93 (38.2% fib). Any minor trend reversal only above 134.25. The decline from 148.72 will get over at 131.61 only if it breaks above 135.67 level.

The near term major support is around 131 and any violation below will drag the pair to the next level till 130.69/130.

It is good to sell on rallies around 132.25-30 with SL around 133 for the TP of 130.