FxWirePro: GBPJPY breaks minor weekly trend line resistance, buy on dips
GBPJPY recovered more than 100 pips after a 1- week of weakness. It has lost more than 250 pips from high of 138.32 made on Jun 11th, 2019. The decline was mainly due to Brexit uncertainty. The pair hits multi-month low at 135.38 yesterday and is currently trading around 136.40.
UK CPI data came in line with expectations. Core CPI y/y at 1.6% vs forecast of 1.7% and UK May inflation is at 0.3% m/m vs estimate 0.3%.
Technically, the pair is trading slightly above trend line resistance at 136.07 and near term resistance is around 137.50 high made yesterday. Any violation above will take the pair to next level 137.20-32 (200 H MA and 300-H EMA)/137.75. The decline from 148.85 will get completed at 135.38 only if pair break 138.32 (Jun 11th high).
On the flip side, near term support is around 135.80 and any break below will drag the pair till 135.38. Any break below yesterdays will take the pair till 130.69 low made on Jan 3rd 2019.6.19
It is good to buy on dips around 137.15-20 with SL around 135.38 for the TP of 137.75/138.32.
Additional levels
137.06- 7 day MA
137.40- 10- day MA
137.71- 20- day MA
138.32- Jun 11th high
