The GBP/JPY declined below 195 due to profit booking. It hit an intraday low of 194.81 yesterday and is currently trading around 194.89. Intraday trend is bullish as long as support 193.89 holds.
The GBP/JPY pair is trading above 55 and 200 EMA (Short-term) and above 365 EMA (long-term on the 1-hour chart, confirming a bullish trend. Any violation below 194.50 indicates the intraday trend is weak. A dip to 193.70/193/192.85/192/191.70/191 /190 is possible. Immediate resistance is at 194.60, a breach above this level targets of 195/196.50. Any major uptrend is possible only above 196.50.
Market Indicators (4- hour)
CCI (50)- Bullish
Directional movement index - Neutral
Trading Strategy: Buy on dips
It Is good to buy on dips around 194.50-55 with SL around 193.70 for a TP of 196.50.
