The GBP/JPY has been consolidating in a narrow range between 199.83 and 197.43 for the past 3 weeks. It hit an intraday low of 197.77 and is currently trading around 197.86. Intraday trend is bearish as long as the resistance at 199.20 holds.
‘The GBP/JPY pair is trading below 55 and 200 EMA (Short-term) and 365 EMA (long-term) on the 60-min chart, confirming a bearish trend. Any violation below 197.40 indicates the intraday trend is weak. A dip to 196.70/196.25/195.25/194/193.70 is possible. Immediate resistance is at 198.70, a breach above this level targets of 199.20/200/202/204.
Market Indicators (60-min chart)
CCI (50)- Bearish
Directional movement index - Bearish
Trading Strategy: Sell
It is good to sell on rallies around 198.28-30 with SL around 199.20 for a TP of 196.15/194.85
