GBPJPY Rallies: Bullish Momentum Intact (For Now?)

GBPJPY recovered sharply as demand for safe-haven assets decreased. It hit an intraday high of 195.09 and is currently trading around 194.93.

Significant debate in Washington concerns a potential phone call this week between U.S. President Donald Trump and Chinese President Xi Jinping amid faltering trade talks and China's ongoing restriction of critical mineral exports. Though the exact timing is still unknown, Trump is supposedly looking forward to this straight talk as he thinks it could help clear the deadlock presently going on. Although Trump acknowledged Xi's aggressive negotiating style and allegations of China breaching a recent pact, both sides are blaming each other for the dearth of movement. Most experts are not expecting a breakthrough as serious disputes over technology, market access, and industrial policy continue and both countries are preparing for possible escalations if the conversations fail, although the Trump administration hopes the call could restart the talks.

The GBP/JPY pair is trading above   55 and  200 EMA (Short-term) and above  365 EMA (long-term on the 4-hour chart, confirming a bullish trend.  Any violation below 194.50  indicates the intraday trend is weak. A dip to 193.95/193/192.70/192/191.70/191 /190 is possible.  Immediate resistance is at 195.20 a breach above this level targets of 196/196.50.

Market Indicators (1- hour)

CCI (50)- Bullish

Directional movement index - Neutral

Trading Strategy: Sell on rallies

 It Is good to buy on dips around 194.20 with SL around 193.50 for a TP of 196.50.