Reason for Long term trend reversal:
- The pair is trading well above 200- day MA for the two consecutive days
- Trades well above short term trend line support.
- Trades slightly above 21- day EMA and 55- day EMA.
- The pair forming higher low (first low after the decline till 124.78 is 136.45 and second low is at 138.45).
- GBP/JPY has closed well above 21- W EMA on the weekly basis
GBP/JPY has formed a temporary top around 148.45 and declined till 50% fibo level from 124.78 and 148.45. The pair has made a low of136.45 and jumped sharply from that level. On the lower side 138.50 will be acting as minor trend reversal level and nay break below targets 136.45/133.82 (61.8% fibo).
The next immediate resistance is around 144.78 (Jan 27th high) and any break above targets 146.78 (55- W EMA)/148.45.
It is good to buy on dips around 141.50 with SL around 139.85 for the TP of 144.78/146.75/148.45
Resistance
R1-144.78
R2 -146.75
R3- 148.45
Support
S1-139.80
S2-138.50
S3- 136.45
