GBPJPY trades at multi month low, dip till 137.35 likely

GBPJPY continues to trade lower and lost more than 100 pips from high of 139.65. The continuation of weakness due to ongoing Brexit uncertainty. In UK’s European election Nigel Farage’s Brexit party won 32% of the vote and 29 seats followed by Liberals Democrats 16 seats ,Labor 10 seats and Conservative 4 seats. GBP will be under more pressure if newly elected PM will run for no deal Brexit deal.The chance of GBPUSD reaching 1.2500 remains high. GBPJPY hits intraday low of 138.28 and is currently trading around 138.45.

On the lower side, near term support is around 138 and any violation below will drag the pair to next level till 137.35/136.

The major resistance is at 139.65-70 and any violation above will take the pair till 140.25/141/141.75.

It is good to sell on rallies around 139.25-30 with SL around 140 for TP of 137.