GBP/JPY Rallies on Trade Optimism: Dip Buying Opportunity?

 GBP/JPY gained sharply as US-China trade war eases. It hits an  high of 190.05 yesterday  and is currently trading around 188.50. Intraday trend is bullish  as long as support 186.50 holds.

In April 2025, the US signaled relaxation of its hardline trade approach to China by indicating deep cuts in tariffs to levels originally indicated, though not eliminating them, which yielded positive market responses. US Treasury Secretary Scott Bessent identified the untenability of the current tariff situation and hopes for de-escalation, though official talks have yet to begin. Even as the IMF reduced its growth projections for the world because of trade tensions, progress with other trading partners like Japan and India, and signs of eased tensions with China, have calmed markets and stoked optimism about reduced economic risks.

The GBP/JPY pair is trading below  34 and 55 EMA (Short-term) and below 200 EMA (long term on the 4-hour chart, confirms a bullish trend.  Immediate resistance is at 190.25,a breach above this level targets of 191/191.75/192.30/193. Downside support is at 188 with additional levels a 187.46/187.10/186.45.

Market Indicators

CCI (50)- Bullish

Directional movement index - Neutral

Trading Strategy: Buy on dips

 It Is good to buy on dips around 188 with SL around 187 for a TP of 192.