GBP/JPY Trade idea

• Major resistance- 127.90 (5- day MA).
   
• Major support -124.80
   
• GBP/JPY has retreated sharply after jumping till 127.70 yesterday. It is currently trading 126.65.
   
• The upside is capped by 5- day MA (127.90) any slight bullishness only above that level. Any violation above that level will take the pair till 128.60 (Oct 10th 2016 high)/129.50 (61.8% retracement of 124.80 and 132.43).
   
• On the lower side, any break below 126.40 will drag the pair to next level till 125.90 (61.8% retracement of 124.83 and 127.70)/125.29.
   
• Overall weakness can be seen only below temporary bottom at 124.80.

It is good to sell on rallies around 127.25-30 with SL around 128   for the TP of 126.40/125.90.

Resistance

R1-127.90

 

R2-128.60

 

R3-129.50

 

Support               

 

S1-126.40

 

S2-125.90

 

S3-125.25