Ichimoku Analysis (Daily chart)
Tenken-Sen- 138.64
Kijun-Sen- 139.06
GBPJPY is trading in a narrow range between 136.58 and 135.41 for the past two days. The surge in Yen against all majors especially is putting pressure on this pair at a higher level. USDJPY lost nearly 100 pips this week due to an increase in safe-haven demand. The UK inflation came better than expected at 0.2% y-o-y vs forecast of 0.1%. The intraday trend of the Pound/Yen is bearish as long as resistance 136.60 holds.
On the daily chart, the pair is holding well below 200-MA. Any close below 135.60 will take it down to the next level till 135/134. It is facing strong resistance at 136.60, any violation above that level targets 137.35/138.
It is good to sell on rallies around 136.35-40 with SL around 137 for the TP of 133.98.
