GBP/JPY trade idea

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