FxWirePro: GBP/JPY Trade Idea

GBP/JPY has halted its bullish trend after more than 1000 pips jump from low of 130.69.The jump was mainly due to strength in GBP after Brexit vote and hopes of delay in Brexit. GBP was trading higher against all majors especially USD. Cable jumped till 1.29965 from the low of 1.23765.UK PM Theresa May is expected to unveil Brexit plan B to the House of Commons The voting on UK PM May Brexit plan B and amendments to the motion will take place on Jan 29th. According to YouGov poll shows that support for UK to remain in the EU has increased to 56% versus 44% leave. GBPJPY hits high of 142.21 and is currently trading around 141.89.Markets eye UK retail sales for further direction.

On the higher side near term resistance is around 142.21 (55- day EMA) and any close above targets 142.65/143/143.95.

The near term support is around 141 and any break below will drag the pair to next level till 140/139.50.The pair should break below 139.50 for further weakness.

It is good to sell on rallies s around 141.10-20 with SL around 142.20 for the TP of 139.50.  

Resistance

R1- 142.20

R2 - 142.65

R3- 143

Support               

S1- 140.60

S2- 140

S3- 139.50