FxWirePro- Sell GBPJPY on rallies
The GBP/JPY currency pair lost its shine on the strong yen. At the time of writing, it hit a low of 191.21 and is currently trading around 191.27. The Potential Reversal Zone (PRZ) is set at 200.20.
Recent tariff threats from U.S. President-elect Donald Trump have shaken global markets, especially affecting the Japanese Yen (JPY), which is seen as a safe- haven currency. Trump plans to impose new tariffs of 10% on Chinese exports and 25% on imports from Canada and Mexico, raising fears of renewed trade tensions similar to those during his previous term. As a result, investors are turning to the Yen for safety amid this uncertainty.
Technical Overview
The GBP/JPY is trading below both short-term and long-term moving averages, which suggests a major downtrend. The immediate resistance level is at 192.50. If the price breaks this level, it could rise toward 193/193.35/193.80/194.15/194.65/195. Support is at 191.75and if that fails, the price could drop to 191.75/190.97/190.
Indicator Analysis
The CCI and ADX indicators suggest a bearish trend.
Trading Recommendation:
Consider selling on rallies around 191.78-80 with SL around 192.63 and aim for a target price of 190.10.
