Ichimoku analysis (Hourly chart)
Tenken-Sen- 136.89
Kijun-Sen- 136.77
GBPJPY is consolidating in a narrow range between 137.23 and 136.50 for the past two days. The surge in pound sterling against USD on broad-based US dollar selling due to stimulus optimism. The strength in the yen is preventing the pair break above the 137.25 level. USDJPY is trading extremely weak, a break below 104.60 will open doors for further bearishness. The intraday trend of GBPJPY is slightly bullish as long as support 136.20 holds.
Technical:
In the Hourly chart, GBPJPY is facing strong support at 200-H MA. Any convincing break below 136.77 will drag the pair till 136.20/136. On the higher side, near term intraday resistance is around 137.25 and any indicative break above that level will take the pair till 138/139.
It is good to buy on dips around 136.75-80 with SL around 136.20 for the TP of 138/139.
