FxWirePro- GBPJPY faces strong resistance around 23.6% fib, good to sell on rallies

GBPJPY pared most of its gains on the strong yen. It hits a high of 186.73 yesterday and is currently trading around 185.27.

Yen gained momentum after weak US PPI data. It has increased the chance of aggressive rate cut by the Fed next week.

Technicals-

The pair is trading below short-term 34, below 55 EMA (186.99 and 187.79), and long-term 200 EMA (190.78) in the  4-hour chart.

The near-term resistance is around 185.70, a breach above targets  186.05/186.40/187/187.74 (23,6% fib)/188.13 (Sep 9th high).Major trend continuation only above 190. The immediate support is at 185, any violation below will drag the pair to 184.56/183.

Indicator (4-hour chart)

CCI (14)- Bearish

CCI (50)- Bearish

Average directional movement Index - bearish. All indicators confirms bearish trend .

It is good to sell on rallies around 185.98-186 with SL around 187.70 for a TP of 180.40.