The GBP/JPY showed a minor sell-off as demand for safe-haven increased. It hit a high of 196.06 and is currently trading around 195.47. Intraday trend is bullish as long as support 193.75 holds.
Recent geopolitical tension, in particular the growing dispute between Israel and Iran has greatly increased demand for safe haven assets such as the Japanese yen. The yen experienced a significant increase in value, reaching its highest level against the US dollar in several sessions, as investors minimized their exposure to risk due to the Middle East conflict, trading at approximately 143.70. The yen's recent surge in demand emphasizes its long-standing role as a secure haven for international investors during times of elevated uncertainty, despite the Bank of Japan' policy remain being dovish about increasing interest rates. This pattern also occurred in other safe havens such as gold and the Swiss franc, where investors moved away from risky holdings.
The GBP/JPY pair is trading above 34 and 55 and 200 EMA (Short-term) and 365 EMA (long-term) on the 4-hour chart, confirming a bullish trend. Any violation below 195 indicates the intraday trend is weak. A dip to 194.70/194.30/193.70 is possible. Immediate resistance is at 196.50, a breach above this level targets of 198/200. Any major uptrend is possible only above 196.50.
Market Indicators (4- hour)
CCI (50)- Bullish
Directional movement index - Neutral
Trading Strategy: sell on rallies
It Is good to buy on dips around 19with SL around 196.50 for a TP of 192.
