Ichimoku Analysis (4-Hours chart)
Tenken-Sen- 135.50
Kijun-Sen- 136.68
GBPJPY has shown a massive sell-off yesterday and lost more than 200 pips on yen strength. The increase in the number of new coronaviruses in the U.S confirms that chance of the second wave of the virus is high. This has increased demand for Safe-haven assets like yen. USDJPY hits 1-month low at 106.57 and shown a recovery till 107.33.
From the 4-hour chart, it shows that the pair is trading below 55 –day EMA at 135.90. Any break below 133.20 (200-4H MA) will drag the pair down till 131.78. On the higher side, strong resistance is at 135.25, and the violation above will take the pair to 135.87/136/136.68.
It is good to sell on rallies around 135.25-30 with SL around 136 for the TP of 133.20.
