GBP/JPY Trade Idea

• Major resistance – 132.40 (23.6% retracement of 143.23 and 129.06).
   
• The pair has recovered sharply after making a low of 130.02 at the time of writing. It is currently trading around 131.82.
   
• UK employment data and earnings data which was released yesterday showed a unexpected improvement in labour market.UK jobless claim fell by 8.6K compared to forecast of 9.5K.
   
• In the daily chart GBP/JPY jumped till 132.25 but not able close above 132.40. The pair should jump above 132.40 for further jump till 133/134.05 in the short term.
   
• On the lower side, the pair should break below 128.60 for further weakness till 126.69.
   
• It must break above 140 for the short-term trend reversal. The support is around 132 and any break below will drag the pair till 130/128.60 (Jul 6th low).

It is good to sell on rallies around 131.80 with SL around 132.50 for the TP of 128.65/126.69

Resistance

R1- 132.40

 R2-133

 R3-134.05

Support

S1-130

S2-128.60

S3-126.69