FxWirePro: GBP/JPY forms shooting star on daily chart and minor trend line breakout, dip till 146 likely
GBP/JPY has lost more than 200 pips from the high of 149.31 made on Monday. Cable has lost more than 250 pips on account weak UK data and Brexit uncertainty. UK CPI Y-o-Y came at 2.4% compared to forecast 2.6% and core C…
GBP/JPY has lost more than 200 pips from the high of 149.31 made on Monday. Cable has lost more than 250 pips on account weak UK data and Brexit uncertainty. UK CPI Y-o-Y came at 2.4% compared to forecast 2.6% and core CPI came at 1.9% y-o-y slightly below previous month 2.1%. UK inflation m/m came at 0% compared to forecast of 0.2% vs 0.4% in the month of May.UK June jobless data released yesterday came better than expected but wage growth has fallen to lowest level in six months. The decline in wage growth could dampen expectations of an interest rate rise next month. Cable has broken major support of 1.3100 and declined till 1.3010. GBPJPY hits intraday low of 147.09 and is currently trading around 147.32.
The pair is facing strong resistance at 148.20 (100- day MA) and any break above will take the pair till 149.50/150.
On the lower side, near term support is around 147 (34- day EMA) and any break below will take the pair to next level till 146/145.
It is good to sell on rallies around 147.55-60 with SL around 148.20 for the TP 146/145.
