GBP/JPY Trade idea

• Major resistance – 132.50 (7 day EMA).
   
• The pair has erased gains sharply after making a high of 132.50 yesterday. It is currently trading around 130.95.
   
• GBP/JPY breaks major support 132 and declined till 130.36.
   
• Yen continues to surge against all major pairs as weakness in global equity markets has supportive for safe haven appeal.
   
• In the hourly chart GBP/JPY is trading slightly below Kijun-Sen (131.45). So it should break above 131.50 for further bullishness.
   
• On the higher side, the pair should break above 132.50 (7 day EMA) for further bullishness. Any break above 132.50 will take the pair till 133.25/133.80/134.05/135.25.
   
• 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 132.35 with SL around 133.35 for the TP of 130/128.65

Resistance

R1- 132.50

 

R2-133.25

 

R3-134.05

 

Support

 

S1-130

 

S2-128.60
 

S3-127