Ichimoku Analysis (4-Hours chart)
Tenken-Sen- 134.44
Kijun-Sen- 134.92
GBPJPY continues to trade to lower for 3rd consecutive days on strong yen. The increase in the number of new coronavirus cases has increased demand for Safe-haven assets like yen. Markets eye UK BOE monetary policy report for further direction. UK CPI came at 0.5% four years low on falling petrol prices. GBP trades weak, any violation below 1.250 will drag the pair to 1.2450.
From the 4-hour chart, it shows that the pair is trading well below 200- EMA (134.32). Any break below 133.40 (200-4H MA) will drag the pair down to 131.78.
On the higher side, strong resistance is at 134.84, and the violation above will take the pair to 135.60/136.35/139.75.
It is good to sell on rallies around 136.10-20 with SL around 137 for the TP of 133.35.
