FxWirePro: Sell GBP/JPY on rallies

• GBP/JPY has shown a minor selling after hitting one month high at 146.66 yesterday. The decline was mainly due to tepid wage growth in UK. The pair dipped till 145.66 and is currently trading around 145.97.
   
• UK wage growth in Jul y-y in 3 months came at 2.1% well below estimate of 2.3%. This shows that wage growth is far below inflation which came at 2.9%. So rising employment and declining wage growth confirms that there is no chance of rate hike by BOE this year.
   
• The pair is trading well above 145 and further bullishness can be seen above 148.45 high made on Dec 15th 2016.
   
• On the lower side, minor weakness can be seen below 144.88 (23.6% retracement of 139.30 and 146.59) and any break below will drag the pair down till 143.65 (34- 4H EMA)/143.05 (55- 4H EMA). Major weakness can be seen only below 143 level.
   
• Any convincing break above 148 confirms major bullishness, a jump till 150 likely.

It is good to sell on rallies around 147.65-70 with SL around 148.45 for the TP of 145.05.