Intraday Bias -Bearish
GBPJPY formed a double bottom around the 186.50 level, showing a minor pullback due to profit booking. It hit a low of 186.42 yesterday and is currently trading around 187.33.
Yen showing strength against all majors as risk sentiment sours due to the global economic slowdown.
Technicals-
The pair trades in the hourly chart below short-term 34,55 EMA (187.39 and 187.71) and long-term 200 EMA (189.29).
The near-term resistance is around 187.55 (61.8%% fib of 188.13 and 186.51),a breach above targets 188.13 (yesterday high)/188.40/189/189.53.Major trend continuation only above 190. The immediate support is at 186.50, any violation below will drag the pair to 185.86 (1.618% fib)/183.58.
Indicator (1-hour chart)
CCI (14)- Bearish
CCI (50)- Bearish
Average directional movement Index - neutral. All indicators confirms minor bearish trends.
It is good to sell on rallies around 188-188.05 with SL around 188.60 for a TP of 185.90.
